Tariffs, inflation and leery customers are hitting retailers in different ways
By MICHELLE CHAPMAN
Retailers are trying to navigate their way through economic uncertainty in 2025. Tariffs, inflation and lingering fears of a recession have left many Americans uneasy and pulling back on spending.
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Because consumer spending accounts for about 70% of U.S. economic activity, a retreat would heighten the odds of contraction for the U.S. economy.
With earnings from major retailers wrapping up it’s become clear that the trade war launched by the Trump administration is impacting retailers in very different ways.
Walmart earned a public rebuke from President Donald Trump after it said last week that it has already raised prices and will have to do so again this summer, right when the back-to-school shopping season kicks off. Trump told the retail giant that it should “eat” the additional costs created by his tariffs.