Retail sales rise 1.4% in March as shoppers stock up on big ticket items ahead of tariffs
U.S. shoppers increased their shopping last month, fueled by a spending spree on foreign-made new big ticket items from gadgets to cars before President Donald Trump’s expansive new tariffs started kicking in
U.S. shoppers increased their shopping last month, fueled by a spending spree on big ticket items from gadgets to cars before President Donald Trump’s expansive new tariffs started kicking in.
Retail sales rose 1.4% in March, after rising 0.2% in February, according to the Commerce Department. Retail sales fell 1.2% in January, hurt in part by cold weather that kept more Americans indoors, denting sales at car dealers and most other stores.
Excluding sales at auto dealers, sales only rose 0.5%.
Sales at auto dealers rose 5.3%, while electronics retailers had a 0.8% increase. Sporting goods retailers enjoyed a 2.4% gain.
But analysts expect sales will start falling off as the slew of tariffs increase costs for companies and many retailers are forced to raise prices, hurting shopper demand. Consumers’ confidence has already taken a hit. And a growing number of retailers and suppliers are halting shipments from China as well as pausing orders as they wait to see where the tariffs settle. In some cases, they are canceling orders.