U.S. retail sales posted a stronger-than-expected March
U.S. retail sales posted a stronger-than-expected increase in March
U.S. retail sales grew more than expected in March, potentially reflecting a rush by consumers to make purchases ahead of the enforcement of President Donald Trump’s sweeping reciprocal tariffs.
According to advanced estimates released Wednesday by the U.S. Census Bureau, retail trade sales rose 1.4% month-over-month in March, a notable jump from February’s 0.2% increase and above economists’ forecast of a 1.3% gain.
On an annual basis, retail sales climbed 4.6% compared to March of the previous year.
Sales at motor vehicle and parts dealers surged 8.8% year-over-year, while nonstore retailers, including e-commerce platforms, saw a 4.8% increase over the same period.
Total sales for the January to March quarter—coinciding with the early months of Trump’s second term—rose 4.1% from the same period in the prior year.
These figures precede Trump’s April 2 announcement of significant reciprocal tariffs targeting numerous countries, introduced as part of a strategy to address trade imbalances and boost federal revenue.
In response to sharp volatility in financial markets, the administration later announced a 90-day partial suspension of many of the newly imposed levies.
Late Friday, the White House temporarily lifted duties on a range of tech-related imports, such as smartphones and computers, primarily from China. Trump has also indicated the possibility of granting exemptions on certain automotive imports.
Nevertheless, a blanket 10% tariff on many countries remains active, alongside existing duties on products like steel, aluminum, vehicles, and auto parts.
China, notably, was excluded from President Trump’s reciprocal tariff delay, further escalating the trade tensions between the world’s two largest economies. Trump imposed a steep 145% tariff on Chinese imports, prompting Beijing to respond with a retaliatory 125% tariff.
