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U.S. Retail Sales Surge 1.4% in March as Consumers Rush to Beat Tariffs

Driven by a 5.3% jump in auto sales, the spending spike reflects preemptive buying ahead of President Trump's trade measures, raising concerns about economic sustainability.

Customers shop televisions at a retail store in Glenview, Ill., Thursday, April 3, 2025. (AP Photo/Nam Y. Huh)
A shopping cart is seen in a supermarket as inflation affected consumer prices in Manhattan, New York City, U.S., June 10, 2022. REUTERS/Andrew Kelly/File Photo
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A shopper carries shopping bags in the North Beach neighborhood in San Francisco, California, on Tuesday, March 11, 2025.

Overview

  • March retail sales increased by 1.4%, the largest monthly gain since January 2023, according to the U.S. Census Bureau.
  • Auto sales surged 5.3% as consumers rushed to purchase vehicles ahead of a 25% tariff on imported cars imposed in early April.
  • Excluding auto and gas sales, retail spending rose 0.8%, with notable increases in home improvement, restaurant, and sporting goods categories.
  • Economists warn that this front-loaded spending may lead to a temporary boost in figures but could mask deeper economic vulnerabilities, including inflation and potential stagflation.
  • Consumer sentiment has declined for four consecutive months, reflecting uncertainty over trade policies and their impact on prices and economic growth.