U.S. Retail Sales Surge as Tariff Fears Spark Buying Rush

Retail sales surged in March as Americans rushed to make purchases ahead of anticipated tariffs. The Commerce Department reported a 1.4% increase in overall retail sales from the previous month, surpassing economists’ expectations of a 1.2% rise. This spike in consumer spending was attributed to accelerated purchases in various categories, driven by fears of impending tariffs.

One of the key drivers of the increase in March retail sales was a surge in car-buying. However, even excluding auto sales, retail sales still rose by 0.5% for the month and 3.6% from a year ago. Consumers were not only buying cars but also stocking up on a variety of goods to avoid potential price hikes resulting from tariffs.

According to experts, pre-tariff purchases supported spending on non-auto goods in the first quarter of 2025. Categories such as hardware and garden stores saw significant increases, with a 3.3% monthly jump in sales – the largest in four years for that category. Additionally, furniture-store sales surged by 7.7% from a year ago, indicating a trend of consumers trying to get ahead of potential price increases.

The category encompassing sporting goods, musical instruments, hobbies, and bookstores also experienced a 2.4% increase in sales from February to March. Spending at electronics and appliance stores saw a more modest 0.8% uptick for the month.

Experts have warned that prices for a wide range of products, including musical instruments and sports gear, could increase due to tariffs. Even items manufactured in the U.S., such as guitars from Fender, could see price hikes due to imported components and raw materials.

The increase in retail sales in March may also indicate a shift in consumer behavior towards financial austerity. With concerns about a potential recession looming, consumers may be preparing to cut back on discretionary spending and focus on home entertainment. Sales at stores selling hobby and leisure goods have seen an uptick, suggesting that consumers are looking for ways to enjoy their time at home without splurging on travel or experiences.

Overall, the surge in retail sales in March reflects a combination of factors, including consumers’ efforts to beat potential tariffs, prepare for price increases, and adjust their spending habits in response to economic uncertainties. It remains to be seen how these trends will continue to impact consumer behavior in the coming months.