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American Focus > Blog > World News > Retail sales jump as people rush to buy cars before tariffs : NPR
World News

Retail sales jump as people rush to buy cars before tariffs : NPR

Last updated: April 16, 2025 7:41 am
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Retail sales jump as people rush to buy cars before tariffs : NPR
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Toyota and Lexus cars unloaded from ships sit parked at the Toyota Logistics Services Inc. automotive processing terminal at the Port of Long Beach in Long Beach, Calif. on April 10, 2025.

Patrick T. Fallon/AFP via Getty Images/AFP


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Patrick T. Fallon/AFP via Getty Images/AFP

Retail spending — one of the key drivers in the economy — saw its biggest jump in more than two years during March, as more people rushed to buy cars and other big-ticket items ahead of President Trump’s new tariffs.

Spending at stores, restaurants and car dealerships grew 1.4% in March compared to February, according to Wednesday’s data from the Commerce Department. That’s the biggest increase since January 2023 — and the driver was mainly autos.

Spending on cars, trucks and auto parts rose more than 5% over last month.

Automakers have offered discounts and shoppers rushed to auto lots in anticipation of prices rising as a result of new tariffs, which Trump announced last month and started applying for many imported vehicles early in April.

The car data group Cox Automotive had reported March as delivering the hottest new car sales in four years. Economists at Cox Automotive now predict the car-buying might last a couple of months before tariff-fueled price increases would cause sales to slow.

Even with a notable rise in retail sales last month, there are concerns that consumer spending could wane as the wider effects of tariffs kick in. Major retailers and big brands have begun scaling back their financial forecasts for the year.

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The latest survey of consumer sentiment by the University of Michigan is noting steep declines in how people feel about the future of the economy, as anxiety rises over tariffs’ impact on prices. But March data, for now, still has people spending generously — on building and gardening supplies, sporting goods and going out to eat.

“The job market is holding tough and incomes are rising, and those are the main factors that drive consumer spending,” said Robert Frick, an economist at Navy Federal Credit Union, in a statement.

For comparison, retail spending in February barely rose, and it declined in January. Compared to a year ago, retail sales in March increased 4.6%.

NPR’s Camila Domonoske contributed to this report.

TAGGED:BuycarsjumpNPRpeopleretailRushSalesTariffs
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