U.S. retail sales rise by more than expected in March

Published 16/04/2025, 13:38
Updated 16/04/2025, 13:48
© Reuters.

Investing.com - U.S. retail sales grew by more than anticipated in March, in a potential sign that consumers were racing to snap up items prior to the implementation of President Donald Trump’s punishing reciprocal tariffs.

Month-on-month, retail trade sales were up 1.4% in March, compared to 0.2% in February, according to advanced estimates from the U.S. Census Bureau on Wednesday. Economists had predicted an uptick of 1.3%.

In the twelve months to March, the figure increased by 4.6%. 

Sales at motor vehicle and parts dealers jumped by 8.8% from last year, while nonstore retailers moved higher by 4.8% versus March 2024.

Total (EPA:TTEF) sales for the January to March period, which include the opening weeks of Trump’s second term in office, rose by 4.1% from the same time frame a year earlier.

The numbers cover the month before Trump unveiled steep reciprocal tariffs on a host of countries on April 2, arguing that it was necessary to correct longstanding trade imbalances and increase federal revenues.

However, he later announced a partial 90-day pause to the elevated levies on most of these nations, in an apparent response to deep ructions in both stock and bond markets.

Late on Friday, the White House temporarily halted duties on a range of tech-related products, such as smartphones and computers, largely coming from China. Trump has also floated potentially granting exemptions to car-related imports.

Still, universal 10% tariffs on many countries remain in place, as well as trade taxes on items like steel, aluminum, autos and auto parts.

China, in particular, was also left out of Trump’s reciprocal tariff delay, ratcheting up a trade spat between the world’s two largest economies. The president has placed a 145% tariff on imports from China, sparking a retaliatory 125% levy from Beijing.

Media reports, meanwhile, have suggested that sector-specific duties on electronic products, semiconductors and pharmaceuticals could soon be implemented. Commerce Secretary Howard Lutnick has said an investigation into these industries that may be a precursor to the tariffs could wrap up "in the next month or two."

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