Tariffs Spur Broad Price Hikes Across US Retail, Consumer Worries Mount

U.S. consumers are facing increasing concerns about rising prices driven by tariffs and inflationary pressures. The International Chamber of Commerce warns that tariff-related price hikes are expected to impact consumers by the end of the third quarter as inventory buffers deplete, forcing companies across sectors like automotive and agriculture to pass costs onto customers. Surveys reveal widespread worry among Americans, with over 80% concerned about grocery prices, many struggling to afford rent, and 41% dipping into savings to cover basic expenses. Back-to-school expenses have become a particular stress point, with 85% of Americans worried about rising costs due to tariffs and many planning to cut spending or reduce other expenses to cope. Additionally, lawmakers express concern about the expansion of surge pricing into grocery stores, which could exacerbate consumer frustrations amid persistent food price inflation, with the Consumer Price Index for food at home reaching a significant annual gain. Despite some improvement in inflation expectations, consumers still feel vulnerable to future price increases, leading to decreased confidence and cautious spending behaviors.