March retail sales data has been released by the Commerce Department, and it provides a look into America’s economy before President Donald Trump’s tariffs went into effect. Retail sales increased by 1.4% during the month. That came in 0.2% higher than the expert estimate and February’s 1.2% sales data.
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The March retail sales data report showed a 4.6% increase in sales year-over-year. Motor dealers saw an 8.8% increase from March 2024, while nonstore retailers jumped 4.8% over that same period. Also, sales for the first quarter of 2025 jumped 4.1% compared to Q1 2024.
What Does the March Retail Sales Data Mean for the Economy?
The strong increase in retail sales last month highlights that consumers continued to spend heavily, leading up to President Trump’s tariffs. This was likely the result of consumers buying goods before tariffs went into effect to avoid increased prices.
It’s unclear how retail sales data for April 2025 will turn out. While Trump has placed massive tariffs on China, other tariffs are largely on hold as the U.S. negotiates trade deals. Consumers may take advantage of this tariff hold to make additional purchases in April.
When Will the Tariff Hold End?
President Trump announced the hold on tariffs on April 9, meaning his 90-day hold should end in early July. Reportedly, several countries have already reached out to the U.S. to negotiate a trade deal.
Even so, there are warnings that the President’s trade policies could drop global trade. The World Trade Organisation (WTO) now estimates that global trade will decrease by 0.2% in 2025. Before Trump’s Liberation Day event, the WTO expected trade to increase by 2.7% in 2025.
Consumers and investors will want to keep up on all of the latest economic data as the trade war continues. TipRanks offers detailed macroeconomic coverage through its Economic Indicators Dashboard.
