Trump's tariff policy causes an 11.2% increase in March car sales, experts warn of the risks of panic buying, Wall Street executives express opposition.
At the beginning of April, President Trump initiated a high tariff policy on imported goods, resulting in an 11.2% increase in car sales in March as consumers bought goods in advance to avoid price hikes. Experts warn that this panic buying might put pressure on household finances. Many financial leaders on Wall Street oppose the tariff policy, worrying it could slow down economic growth and trigger market volatility. Under pressure, the Trump administration has postponed the implementation of some tariffs, but the 25% tariff on goods such as cars has already taken effect, putting pressure on consumers and businesses as they face rising costs.
Key Updates
04/12 03:36
Trump's tariff policy causes an 11.2% increase in March car sales, experts warn of the risks of panic buying, Wall Street executives express opposition.
At the beginning of April, President Trump initiated a high tariff policy on imported goods, resulting in an 11.2% increase in car sales in March as consumers bought goods in advance to avoid price hikes. Experts warn that this panic buying might put pressure on household finances. Many financial leaders on Wall Street oppose the tariff policy, worrying it could slow down economic growth and trigger market volatility. Under pressure, the Trump administration has postponed the implementation of some tariffs, but the 25% tariff on goods such as cars has already taken effect, putting pressure on consumers and businesses as they face rising costs.
Car Buying Surge: March Sales Increase by 11.2% Year-on-Year
According to reports from ABC News and TechNews, U.S. car sales in March increased by 11.2% year-on-year, marking one of the most significant consumer reactions prior to the announcement of the tariff policy. The trigger for this buying surge was the Trump administration's policy to impose a 25% tariff on all imported cars and some parts starting April 3. Many consumers chose to buy cars in advance to avoid potential price hikes.
Noel Peguero, a school staff member from New York, stated that he spent about $3,500 in a week on car parts, gardening supplies, and electronics. "I was planning to buy these things anyway, but I acted immediately upon hearing the tariff news."
Cars are not the only items affected. A retired couple in the Chicago suburbs, who originally planned to gradually replace their kitchen appliances, decided to buy a stove, refrigerator, microwave, and dishwasher all at once after learning about the tariffs. Large retailers such as Costco and Walmart also experienced a surge in customers, with consumers stockpiling bottled water, soap, and cleaning supplies, reflecting anxiety over future price uncertainties.
Experts Warn: Panic Buying May Lead to Financial Pressure
Despite the impressive short-term sales data, experts have issued warnings about this buying surge. Ted Rossman, a senior analyst at Bankrate, pointed out, "Many families' savings have decreased while debt is rising. Making large purchases or stockpiling now could lead to long-term financial strain."
He advised consumers to calmly assess their financial situation and avoid incurring debt due to short-term panic. "Instead of rushing to buy a new car or renovate the kitchen, it's better to continue using existing equipment and make decisions once the market stabilizes."
Denish Shah, a marketing professor at Georgia State University, also noted that market uncertainty amplifies consumers' expectations of future losses, leading to irrational purchasing behavior. "They might think, 'Prices might go up tomorrow, so I should buy today,' which accelerates consumption decisions but may not be a rational choice."
Wall Street Rebounds: High Tariffs Could Drag Down Economy and Market
The Trump administration's tariff policy has not only triggered consumer reactions but also stirred the financial markets. Jamie Dimon, CEO of JPMorgan Chase, warned in a letter to shareholders that high tariffs could lead to slower economic growth and rising inflation, and even pose the risk of "stagflation." He emphasized, "America First should not lead to America isolated."
Larry Fink, CEO of BlackRock, stated that the U.S. might already be in a recession and expressed concern that inflationary pressures could exceed expectations. Hedge fund giant Bill Ackman even took to social media platform X, urging Trump to delay the tariff implementation by 90 days, warning that "business investment will stall, consumers will tighten their wallets, and America's reputation will be damaged."
Other financial heavyweights like Saba Capital founder Boaz Weinstein, Oaktree Capital co-chairman Howard Marks, and Third Point founder Dan Loeb also expressed opposition. Weinstein warned that the new tariff policy could accelerate corporate bond sell-offs and trigger a wave of bankruptcies, "with impacts potentially faster and more severe than other crises."
Market Turmoil and Policy Reversal
Facing pressure from the market and financial sectors, the Trump administration announced on April 9 a 90-day delay in implementing "reciprocal tariffs" on 60 high-trade-deficit partners, maintaining only a 10% baseline tariff. Nevertheless, the 25% tariff on cars and other imported goods has already taken effect, and consumers and businesses still face rising cost pressures.
According to statistics from the China Automotive News, among global automotive listed companies in March, 34% saw an increase in market value month-on-month, but most multinational car companies still showed a downward trend in market value. The China Automobile Dealers Association's "Automobile Consumption Index" also showed a March index of 71.5, slightly down from the previous month, with expectations that April sales will remain flat or slightly decline, suggesting that the buying surge may be a temporary phenomenon.
