US clothing and accessories retailers saw a modest 0.76 per cent rise in sales in March, a temporary surge driven by consumers pre-emptively purchasing goods amid growing concerns over impending tariffs. Data from the CNBC/NRF Retail Monitor reveals that households stocked up on apparel and accessories in anticipation of price increases following President Donald Trump’s announcement of imposed taxes on imports from key trading partners, including Canada, China, and Mexico.
Despite this month-over-month growth, the report underscores a prevailing cautiousness among consumers, largely attributed to anxieties surrounding escalating tariffs and their potential impact on prices. This limited spending increase followed two consecutive months of decline for the broader US retail sector, highlighting the significant influence of trade policy on consumer behavior.
The March sales figures precede President Trump’s more sweeping announcement on 2nd April, which declared at least a 10 per cent tariff on goods from all US trading partners, alongside reciprocal tariffs that are currently on a 90-day hold. Heightened trade tensions between the US and China, stemming from additional levies on Chinese goods, are also contributing to the uncertain economic outlook.
Matthew Shay, President and CEO of the National Retail Federation (NRF), stated in response to the data that retail sales increased in March, but only moderately. He added that the spending occurred before the president’s “Liberation Day” tariff announcement.
A survey conducted by Prosper Insights & Analytics for the NRF in early March indicated that nearly half (46 per cent) of consumers were already engaging in pre-emptive buying of items such as household appliances and clothing due to fears of tariff-induced price hikes.
