Consumer spending drops thanks to TACO Trump and his economic chaos

The Commerce Department reported on Tuesday that consumer spending fell more than expected in May, following the rollout of tariffs by President Donald Trump. Sales were down 0.9% while the consensus estimate by Dow Jones consensus had expected a 0.6% drop. Sales were also down in April.

Heather Long, chief economist at Navy Federal Credit Union, told CNBC, “Families are wary of higher prices and are being a lot more selective with where they spend their money.”

Auto sales—down 3.5%—were one of the worst-hit areas along with auto parts. That is one of the areas squarely in the targets of Trump’s tariffs. In March, Trump announced a 25% tariff on imported cars and car parts, and even though he has pulled back on some of those costs since, auto manufacturers are expected to pass on their increased costs to consumers.

Other areas experiencing sales declines: restaurants, building materials, and garden stores.

https://www.dailykos.com/stories/2025/6/17/2328533/-Consumer-spending-drops-thanks-to-TACO-Trump-and-his-economic-chaos?