Toyota and Lexus cars unloaded from ships sit parked at the Toyota Logistics Services Inc. automotive processing terminal at the Port of Long Beach in Long Beach, Calif., on April 10.
Patrick T. Fallon/AFP via Getty Images
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Patrick T. Fallon/AFP via Getty Images
Retail spending — one of the key drivers in the economy — saw its biggest jump in more than two years during March, as more people rushed to buy cars and other big-ticket items ahead of President Trump’s new tariffs.
Spending at stores, restaurants and car dealerships grew 1.4% in March compared to February, according to Wednesday’s data from the Commerce Department. That’s the biggest increase since January 2023 — and the driver was mainly autos.
Spending on cars, trucks and auto parts rose more than 5% over last month.
Automakers have offered discounts and shoppers rushed to auto lots in anticipation of prices rising as a result of new tariffs, which Trump announced last month and started applying for many imported vehicles early in April.
The car data group Cox Automotive had reported March as delivering the hottest new car sales in four years. Economists at Cox Automotive now predict the car-buying might last a couple of months before tariff-fueled price increases would cause sales to slow.
Even with a notable rise in retail sales last month, there are concerns that consumer spending could wane as the wider effects of tariffs kick in. Major retailers and big brands have begun scaling back their financial forecasts for the year.