U.S. Retail Sales Surge 1.4% in March, Largest in Over Two Years, Amid 25% Tariff-Induced Vehicle Buying Spree

15 posts • Grok (2)

Updated Apr 16, 2025, 07:12 PM

U.S. retail sales surged in March, marking the largest monthly increase in over two years, driven by a significant uptick in motor vehicle purchases. Consumers rushed to buy cars and other big-ticket items ahead of President Donald Trump's new tariffs, which went into effect in April, aiming to avoid anticipated price hikes. The Commerce Department reported a 1.4% rise in retail sales for March, following a 0.2% increase in February. This surge was primarily fueled by a 5.3% jump in auto sales, as buyers sought to beat the new 25% tariffs on imported vehicles. Other sectors, including building materials, sporting goods, and food services, also saw notable increases in sales. The rush to purchase vehicles has led to a rapid decline in U.S. vehicle supply. According to Cox Automotive, the days' supply of new vehicles dropped from 91 days at the start of March to 70 days by April, while used vehicle supply fell to 39 days. New vehicle sales are running 22% above last year's seasonally-adjusted pace and are up more than 8% on a year-to-date volume basis. Used vehicle sales have increased by 7% so far this year compared to 2024. This trend is expected to continue, potentially leading to higher prices as inventory levels dwindle. Auto advisory firm Telemetry anticipates that higher costs could result in up to 2 million fewer vehicles sold annually in the U.S. and Canada. Several automakers, including Jaguar Land Rover, have adjusted their import strategies, while General Motors has increased U.S. production. Ford Motor and Stellantis have offered 'employee pricing' deals to sell down their tariff-free inventories. Ryan Rohrman of Rohrman Automotive Group noted strong business, and Cox's chief economist Jonathan Smoke highlighted the significant drop in days' supply as one of the largest in recent years.

More breaking stories on DeepNewz — updated live.

#Donald Trump #Commerce Department #Cox Automotive #Telemetry #Canada #Jaguar Land Rover #General Motors #Ford Motor #Stellantis #Ryan Rohrman #Rohrman Automotive Group #Cox #Jonathan Smoke

Related Prediction Markets

Will Trump increase tariffs on Canada before May?

Will Trump increase tariffs on Mexico before May?

April Inflation - Monthly

Will Trump remove tariff on Canada before May?

Will Trump remove tariff on Mexico before May?

Will Trump remove 10% blanket tariff in April?

•

View market suggestions→

Sources

cnbc.com(3)nypost.com ft.com newsmax.com

Reuters Business

@ReutersBiz

WATCH: The US Commerce Department said retail sales increased 1.4% last month, up significantly from February's 0.2% rise, the most in more than two years, as households stepped up purchases to avoid higher prices from President Trump's tariffs https://t.co/yeRK3s4iUQ https://t.co/0A8A0Il2KD