March Retail Sales Post Highest Surge In Over Two Years As US Consumers Anticipate Tariff Jitters

Retail sales in March grew at the fastest pace in over two years, underscoring how American consumers accelerated their spending ahead of anticipated price distortions stemming from President Donald Trump‘s tariffs.

According to advance estimates from the U.S. Census Bureau, retail and food services sales rose to $734.9 billion in March 2025. That’s up 1.4% from the previous month. This marked a sharp acceleration from February's 0.2% gain and exceeded economists’ expectations for a 1.3% increase.

Year-over-year, retail sales climbed 4.6%, the strongest annual growth since February 2023 and a notable improvement from the prior month's 3.1% increase.

The most significant contributor to the monthly surge was motor vehicle and parts dealers, with sales jumping 5.3%. Building materials and garden equipment stores followed with a 3.2% gain, while food services and drinking places rose 1.8%.

Not all segments saw growth. Sales at gasoline stations fell 2.5%, while department stores posted a modest 0.3% decline.

Excluding gasoline and motor vehicles, retail sales rose 0.8% in March, matching February's revised figure.

Market Reactions

U.S. equity futures declined sharply in premarket trading Wednesday, weighed down by fresh export restrictions targeting China-bound chips from Nvidia Corp. NVDA and other semiconductor firms.

As of 8:40 a.m. Eastern Standard Time, S&P 500 futures were down 0.8%, while Nasdaq 100 contracts dropped 1.5%, reflecting investor jitters over the escalating tech trade tensions.

Shares of Nvidia plunged 6.5% in the premarket, with Advanced Micro Devices Inc. AMD also tumbling 7%. The sell-off came after overnight reports of tightened U.S. export controls affecting advanced chip sales to China.

Adding to the sector’s woes, Dutch semiconductor heavyweight ASML Holding N.V. ASML reported weaker-than-expected first-quarter revenue, sending its shares down 4.5% in European trading.

Amid the risk-off sentiment, gold extended its historic rally. Bullion surged over 2% to hit $3,320 per ounce, bringing its year-to-date gains to 23% as investors continue to seek safe-haven assets.

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