U.S. Retail Sales Fall 0.3% in June Amid Tariff Concerns

U.S. retail sales slowed in June, marking the first monthly decline since February, as consumers expressed apprehension about the economy amid ongoing concerns over tariffs and trade policies. According to reports from the National Retail Federation (NRF) and data compiled by Affinity Solutions, total retail sales excluding automobiles and gasoline fell approximately 0.3% month over month, while year-over-year sales still showed modest growth around 3.2% to 3.4%. NRF President and CEO Matthew Shay noted that this slowdown reflects a 'wait-and-see' approach by shoppers, impacted by prolonged uncertainty and restrictive trade policies despite the supportive potential of President Trump's 'Big Beautiful Bill.' Most retail sectors experienced declines in monthly sales except for digital products, which saw significant growth, while categories like building supplies and grocery stores also reported decreases. Analysts highlighted that widespread price increases due to tariffs have not yet fully materialized, though companies anticipate implementing tariff-mitigation price adjustments soon. Overall, economic fundamentals remain intact, but consumer sentiment appears cautious, contributing to the gradual slowing of retail activity.