Retail Sales Surge Amid Tariff Panic Buys

U.S. retail sales experienced a significant increase in March, driven by consumer rush to avoid anticipated price hikes due to tariffs. While this boosted the economy temporarily, experts predict a decline in consumer confidence and spending as the impact of changing trade policies becomes more pronounced.

In a surprising twist, U.S. retail sales surged in March, marking the largest increase in over two years. The uptick was primarily fueled by consumer panic buying to avoid anticipated price hikes from President Donald Trump's shifting tariff policies.

Despite this temporary boost, economists warn of a grim outlook as the initial rush fades and consumer confidence erodes. Expectations for GDP growth remain low, with fears of stagflation looming due to rising inflation and stagnant economic expansion.

With high-income households potentially retrenching and the Trump administration's cost-cutting measures affecting morale, the economic impact of the tariffs is expected to undercut spending in the coming months.

(With inputs from agencies.)