June 18th, 2025
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According to the U.S. Department of Commerce, following a marginal contraction of 0.1% in April, U.S. retail sales plummeted by 0.9% in May, a precipitous decline largely attributed to a retrenchment in automobile sales after a March surge driven by consumers preemptively circumventing anticipated tariffs of 25% on imported vehicles and automotive components under the Trump administration's trade policies; however, despite flagging consumer confidence, the stabilization of prices coupled with historically low unemployment rates suggests a potential maintenance of moderate spending levels in the coming months, as evidenced by a 0.4% increase in sales excluding volatile sectors such as gasoline, automobiles, and restaurants, thereby indicating continued, albeit selective, discretionary spending, with notable upticks observed in online retail, apparel, and furniture sectors offsetting sharp downturns across numerous other categories, further reinforcing the plausible nexus between diminished retail activity and anxieties surrounding tariff-induced price escalations under the auspices of the incumbent administration's trade agenda.
June 18th, 2025
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