The US economic engine sputtered in May: Consumer spending declined for the first time since January, according to new data released Friday that also showed inflation heated up on an annual basis.
President Donald Trump has said his tariffs were designed to close the gap between the amount of goods imported and exported. The U.S. trade deficit declined in June, but tariffs may have played an unexpected role.
Prices for goods rose in June as businesses passed the cost of tariffs on to customers, according to the Federal Reserve's preferred measure of inflation.