Retail sales rise a solid 0.5% in July from June helped by rebounding auto sales
canoncitydailyrecord.com -- Friday, August 15, 2025, 9:29:06 AM Eastern Daylight Time
Categories: U.S.–China Relations, Economic Policy & Jobs, Trade Policy & Tariffs
The increases followed two consecutive months of spending declines
By ANNE D'INNOCENZIO, Associated Press Retail Writer
NEW YORK (AP) -- Shoppers spent at a healthy pace in July, particularly at the nation's auto dealerships, as they shrug off President Donald Trump's tariffs, which are starting to take a toll on jobs and lead to some price increases.
Retail sales rose 0.5% last month, a slowdown from a revised 0.9% in June, which was revised upward, according to the Commerce Department's report released Friday. The pace in July matched economists' estimates.
The increases followed two consecutive months of spending declines -- a 0.1% pullback in April and a 0.9% slowdown in May.
Excluding auto sales, which have been volatile since Trump imposed tariffs on many foreign-made cares, retail sales rose 0.3%.
Auto sales rose 1.6%. They appear to have returned roughly to normalized spending after a surge in March and April as Americans attempted to get ahead of Trump's 25% duty on imported cars and parts and then a slump after that, according to Samuel Tombs, chief U.S. Economist at Pantheon Macroeconomics.
The data showed solid spending across many retail sectors. Business at clothing stores was up 0.7% while online retailers saw a 0.8% increase. Business at home furnishings and furniture stores rose 1.4%.
However, at electronics stores, sales were down 0.6%. And business at restaurants, the lone services component within the Census Bureau report and a barometer of discretionary spending, fell 0.4%, however as shoppers are focusing on eating at home to save money.
Still spending appears to be holding up even as Trump's tariff are resulting in a slowdown in hiring and rising prices for shoppers.
Earlier this month, the Labor Department reported that U.S. hiring is slowing sharply as Trump's trade policies paralyze businesses and raise concerns about the outlook for the world's largest economy. U.S. employers added just 73,000 jobs last month, the Labor Department reported Aug 9, well short of the 115,000 expected.
Another government report, issued Tuesday, on U.S. inflation showed that inflation was unchanged in July as rising prices for some imported goods were offset by declining gas and grocery prices, leaving overall prices modestly higher than a year ago.
Consumer prices rose 2.7% in July from a year earlier, the same as the previous month and up from a post-pandemic low of 2.3% in April. Excluding the volatile food and energy categories, core prices rose 3.1%, up from 2.9% in June. Both figures are above the Federal Reserve's 2% target.
On a monthly basis, prices rose 0.2% in July, down from 0.3% the previous month, while core prices ticked up 0.3%, a bit faster than the 0.2% in June.
The new numbers suggest that slowing rent increases and cheaper gas are offsetting some impacts of Trump's sweeping tariffs.
Many businesses are also likely still absorbing much of the cost of the duties. The consumer price figures likely reflect some impact from the 10% universal tariff Trump imposed in April, as well as higher duties on countries such as China and Canada.
But that may change. U.S. wholesale inflation soared unexpectedly last month, signaling that Trump's taxes are pushing costs up and that higher prices for consumers may be on the way.
The Labor Department reported Thursday that its producer price index -- which measures inflation before it hits consumers -- rose 0.9% last month from June, biggest jump in more than three years. Compared with a year earlier, wholesale prices rose 3.3%. The figures were much higher than economists had expected.
The report comes as major retailers like Walmart and Target are slated to report their fiscal second-quarter earnings reports starting next week. Analysts will stud the reports to see how much retailers are absorbing the costs and how much they're passing on to shoppers. They'll also want to get insight into the state of consumer behavior heading into the critical fall and winter holiday seasons.
In May, Walmart, the nation's largest retailer, warned t hat it had increased prices on bananas imported from Costa Rica from 50 cents per pound to 54 cents, but it noted that a large sting for shoppers wouldn't start to appear until June and July. The retailer's chief financial officer, John David Rainey, told The Associated Press that he thought car seats made in China that were selling for $350 at Walmart would likely cost customers another $100.
But a growing list of companies including Procter & Gamble, e.lf. Cosmetics, Black & Decker and Ralph Lauren told investors in recent weeks that they plan to or have already raised prices.
Some, like eyewear retailer Warby Parker, are trying to be selective and are trying to focus on raising prices on just their premium products as a way to offset the higher costs from tariffs.
Warby Parker has been shifting production away from China, where it plans to bring the percentage of all cost of goods sold by year-end under 15%. But it's also having to deal with higher tariffs costs in other countries.
Warby Parker told analysts last Thursday that it plans to keep its $95 option. But it's increasing prices on select lens types. It also wants to cater more to older shoppers who need more expensive progressive lens. Warby Parker said that progressives, trifocals and bifocals make up roughly 40% of all prescription units sold industrywide. But just 23% of Warby Parker's business now is made up of progressives. Company executives said progressives are its highest priced offering and offer the highest profit margins.
"We were able to quickly roll out select strategic price increases that have benefited our growth," Neil Blumenthal, co-chairman and co-founder and co-CEO of Warby Parker, told analysts last week.
Sign Our PetitionThe recent report on retail sales offers a snapshot of consumer spending amidst the backdrop of growing economic tensions stemming from President Trump's trade policies. While the 0.5% increase in retail sales from June to July appears to paint a picture of resilience, it is essential to dissect the underlying factors contributing to this growth, particularly the impacts of tariffs on both consumer behavior and the broader economy. The nuances of this data reveal a complex interplay between short-term spending habits and the long-term consequences of economic policy decisions that disproportionately affect working-class Americans.
Historically, trade policies have often been a double-edged sword. While they are touted as measures to protect domestic industries, they frequently lead to unintended consequences that exacerbate inequalities and job insecurity. The rising auto sales, which contributed significantly to the July figures, can be seen as a temporary rebound following a preemptive rush by consumers to purchase vehicles before the implementation of Trump's 25% duty on imported cars and parts. This surge in purchasing, however, is not indicative of a sustainable economic strategy; rather, it reveals a consumer base scrambling to adapt to an unstable economic environment. Such volatility is reminiscent of past economic crises where hasty policy decisions led to market fluctuations that left many workers vulnerable.
The broader implications of these retail figures also tie into the ongoing struggles faced by workers in the face of economic uncertainty. The labor market is showing signs of strain, with only 73,000 jobs added last month compared to an expected 115,000. This discrepancy is critical; it indicates that while consumers may be spending, the foundation of job security is crumbling. As businesses grapple with the repercussions of tariffs, hiring slows, and with it, the economic stability of families across the country diminishes. The casual observer might view the retail sales rise as a sign of economic health, but in reality, it is symptomatic of deeper issues that require attention and advocacy for fair labor practices and comprehensive economic reforms.
Moreover, the data highlights a troubling trend in consumer behavior as families increasingly turn to home cooking over dining out—a shift that was evident in the 0.4% decline in restaurant spending. This change is not merely a reflection of lifestyle choices, but rather a response to the rising costs of living exacerbated by tariffs and inflation. As the cost of essential goods and services continues to rise, many families are forced to make difficult decisions about their spending. These choices often reveal stark inequalities, as those with lower incomes feel the pressure of inflation more acutely than wealthier households, who might have the financial cushion to absorb price increases.
Lastly, the interplay between inflation and consumer spending raises critical questions about the role of government in regulating the economy. The Federal Reserve's target inflation rate of 2% is being exceeded, prompting concerns over the long-term viability of monetary policy in the current economic climate. The data suggests that while some prices are stabilizing, others are not, creating an uneven landscape of economic recovery. The necessity for a more equitable economic approach is evident; one that prioritizes the needs of working families rather than the interests of corporations. Advocating for policies that address wage stagnation, support small businesses, and ensure fair trade practices is essential in countering the potentially damaging effects of current economic strategies.
In conclusion, the rise in retail sales, while superficially positive, reveals a complicated picture of economic resilience amidst adversity. The historical context of trade policies, the ongoing struggles of the labor market, and the impacts of inflation on consumer behavior all point to a need for a deeper examination of how economic policies affect everyday lives. By understanding these dynamics, we can foster informed discussions that challenge the prevailing narratives and advocate for a more equitable economic future for all.
The recent article detailing the rise in retail sales in July, driven primarily by the auto sector, highlights the complexities of our current economic landscape. On the surface, a 0.5% increase in retail sales might seem like a positive indication of consumer confidence; however, this uptick is occurring against the backdrop of President Trump’s controversial trade policies, which have resulted in rising prices and employment uncertainties. The interplay between consumer behavior and the broader economic implications of tariffs provides a nuanced perspective that is often overlooked in mainstream discussions, particularly when engaging with those who may hold opposing economic views.
Historically, the American economy has thrived on principles of free trade and global cooperation, generating a wealth of opportunities for both consumers and businesses alike. The imposition of tariffs—particularly the 25% duty on imported cars and parts—represents a significant departure from these principles and has led to a ripple effect felt by workers and families across the nation. This is not just an abstract economic issue; it touches the lives of everyday Americans, as evidenced by the slowed job growth reported alongside the rise in retail sales. With only 73,000 jobs added in July, far below the anticipated 115,000, it becomes evident that the economic policies in place are having a tangible impact on the workforce. Engaging in conversations about these statistics offers an opportunity to challenge the narrative that seeks to downplay the consequences of current policies.
As we navigate the implications of these economic trends, it's imperative for Americans to remain informed and active. One actionable step is to engage in grassroots advocacy aimed at promoting fair trade policies that prioritize American workers and families. This could involve supporting local businesses, which not only stimulates the economy but also cultivates a sense of community resilience. Moreover, it is essential for citizens to participate in local elections and advocate for representatives who prioritize economic policies that benefit the working class and address the repercussions of tariffs and trade wars. In doing so, we can collectively push for a shift towards more equitable economic practices that do not sacrifice job security for short-term gains.
Educational outreach also plays a crucial role in empowering individuals to understand the broader economic context. Workshops, community forums, and online discussions can shed light on the real effects of tariffs and trade policies, dispelling myths that may be propagated by those who benefit from the status quo. By fostering an informed electorate, we can ensure that economic discussions are rooted in reality rather than rhetoric, making it easier for individuals to confront and challenge the assertions made by opponents of equitable trade policies.
Finally, it is crucial to frame these discussions in a way that resonates with those who may not initially agree. When engaging with right-wing perspectives, it is effective to emphasize common values such as job security, fair wages, and economic stability. Highlighting how current trade policies jeopardize these values can create space for constructive dialogue. By presenting data and personal stories that illustrate the negative impact of tariffs on both consumers and workers, we can foster a more nuanced understanding that transcends partisan divides. This approach not only builds bridges but also cultivates a shared commitment to an economy that works for everyone, rather than just a select few.
The recent article highlights significant economic indicators related to retail sales, job growth, and the impact of tariffs. For individuals concerned about the implications of these developments, particularly in relation to tariffs and their broader economic consequences, there are several actionable steps to take. Below is a detailed list of ideas and real-world actions that can be pursued.
### What Can We Personally Do About This?
1. **Advocate for Fair Trade Policies**: - Engage with local representatives to express concerns about tariffs and their effects on the economy.
2. **Support Local Businesses**: - Choose to shop at local stores and businesses to help mitigate the impact of tariffs and support community employment.
3. **Educate Others**: - Share information about the economic impacts of tariffs and trade policies with friends, family, and community members.
4. **Participate in Economic Justice Initiatives**: - Join organizations that advocate for fair labor practices and equitable economic policies.
### Exact Actions to Take
1. **Write to Elected Officials**: - **Who to Write**: Your local congressional representatives and senators. - **Sample Contacts**: - **Senator Chuck Schumer** (D-NY) - Email: schumer.senate.gov/contact/email-chuck - USPS Address: 478 Russell Senate Office Building, Washington, DC 20510 - **Representative Alexandria Ocasio-Cortez** (D-NY 14th District) - Email: ocasio-cortez.house.gov/contact - USPS Address: 229 East 104th Street, New York, NY 10029 - **What to Say**: - Express concerns about the impact of tariffs on jobs and prices. - Advocate for policies that support fair trade and protect consumer interests. - Request transparency in how tariffs are impacting different sectors of the economy.
2. **Sign Petitions**: - Participate in or create petitions that call for a review of tariff policies. - **Example Petitions**: - Change.org often hosts petitions related to trade policies. Search for relevant petitions and add your name. - Consider starting a petition aimed at local businesses to rally support for fair trade practices.
3. **Join Local Advocacy Groups**: - Engage with organizations like the Economic Policy Institute or local labor unions. - Attend meetings, volunteer for campaigns, and participate in local events that advocate for economic justice.
4. **Engage on Social Media**: - Use platforms like Twitter or Facebook to highlight the negative impacts of tariffs and trade policies. - Share articles, personal stories, and relevant statistics to raise awareness and prompt discussions.
5. **Participate in Public Forums**: - Attend town hall meetings or public forums to voice concerns about economic policies. - Prepare points to discuss on how tariffs are affecting local jobs and prices for consumers.
6. **Educate Yourself and Others**: - Read books, articles, and research papers on economics, tariffs, and their impacts. - Host a community discussion or book club focused on economic issues to foster understanding and collective action.
7. **Support Local and Sustainable Products**: - Prioritize purchasing products from local or ethically sourced companies that may be less affected by tariffs. - Encourage others to consider the origins of the products they buy.
By taking these actions, individuals can contribute to a larger movement advocating for fair economic policies and practices that prioritize the well-being of workers and consumers. Engaging with local representatives, supporting community businesses, and educating oneself and others can create a ripple effect that leads to positive change in economic policy.