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Despite concerns that Trump's tariffs would cause a spike in prices or even a recession, we haven't seen an inflation report that supports those concerns, and now, the latest retail sales report from the Commerce Department is also showing economic strength.
According to reports, retail sales were 0.2% stronger than expected, coming in up by 1.2%. This includes spending at everything from car dealerships to restaurants.
A control group, which didn't count spending on things like gas, car dealerships, or building materials, also showed solid gains, coming in up 0.5%, which also beat expectations.
All of this seems to support the claims that Trump's tariffs aren't having any major negative effects on the economy, and the price increases we are seeing are primarily due to the cost of housing rising.