In March 2025, U.S. retail sales surged by 1.4%, the largest monthly increase since January 2023, driven by consumer urgency to buy before impending tariffs.

As retail sales figures are not adjusted for inflation, future reports may show artificial growth, complicating the understanding of consumer spending trends amid rising prices.

Automakers like Ford and Stellantis are responding to these pressures by offering employee pricing and other incentives, although these may diminish as manufacturers adjust to higher import costs.

The backdrop of this spending frenzy includes a base tariff of 10% on most imports and a staggering 145% tariff on goods from China, alongside additional tariffs on steel, aluminum, and vehicles.

This rush to purchase is largely influenced by concerns over inflation and unpredictable trade policies, which have contributed to a significant drop in consumer confidence for four consecutive months.

Cox Automotive reported a decrease in new vehicle supply, further corroborating the rush to buy cars before prices increase due to tariffs.

As a result, consumers are advised to act quickly on fair deals, especially in the automotive sector, where prices are expected to rise significantly due to tariffs.

Despite a temporary pause on reciprocal tariffs for certain items, tariffs on Chinese goods remain, heightening urgency among U.S. shoppers to make purchases before prices rise.

Retailers, both large and small, are feeling the impact of tariffs, with many delaying shipments from China until trade policies stabilize, while some are even canceling orders.

Economists warn that the current spending surge may not be sustainable, with predictions of a decline in consumer spending as the year progresses, potentially increasing recession risks.

The auto industry faces significant uncertainty due to these tariffs, complicating new car model timelines and pricing strategies.

While Trump's tariffs aim to address trade imbalances, they have also led to exemptions for specific tech products, highlighting the complexities of the current trade environment.