In a sign that consumer demand may be fraying around the edges, spending at US retailers slowed sharply in April to 0.1% after a surge of 1.7% in March as shoppers rushed to beat President Donald Trump’s stiff tariffs.

Consumer prices climbed at the slowest pace since February 2021 last month, as the inflationary effects of President Donald Trump's tariffs have yet to hit Americans' wallets.

Inflation is getting closer to the Federal Reserve's 2% target.

Inflation was relatively mild in April, but economists said tariffs will end a recent lull and push up more prices in the coming months. The consumer-price index rose a seasonally adjusted 0.2% in April,

Trump's sweeping tariffs are economically damaging, raising costs for consumers and businesses, and risk triggering a global trade war and recession. The unpredictability and amateurish execution of these tariffs create unprecedented uncertainty, discouraging long-term investment and threatening equity valuations.

Tuesday's report could provide an early read on how Trump's duties will affect the prices Americans pay for necessities and other goods such as clothing, shoes, furniture and even groceries.

The CPI report was cooler than expected, although inflation is still higher than the Federal Reserve's 2% annual goal.

President Trump repeated his call for the Federal Reserve to cut interest rates after April's inflation report was cooler than expected.

Inflation rose less than expected in April, as prices rose 2.3% over the year, down from 2.4% in March. Prices for gas and groceries fell, but housing and eating at restaurants got more expensive. Inflation was slightly milder than forecasters had expected, before consumers faced the full brunt of President Donald Trump's import taxes.

The U.S. collected $7.6 billion more in customs duties in April than it did in March, the Treasury said Monday, as revenue from tariffs on imported goods ramped up sharply. Gross customs duties collected in April reached a monthly record of $16.