Americans are rushing to buy cars ahead of looming price hikes, fueling a short-term spending spree on goods most vulnerable to the latest wave of tariff disruptions.
In its Beige Book released Wednesday, the Federal Reserve said most regional districts reported moderate to robust vehicle sales, attributing the surge to “a rush to purchase ahead of tariff-related price increases.”
The data underscores growing anxiety as the 25% tariff on imported automobiles, imposed by the Trump administration, took effect on April 3.
A Tale of Two Consumers: Autos Hot, Everything Else Not
While Americans are racing to lock in car deals, non-auto consumer spending has taken a hit.
The Beige Book’s national summary described overall economic activity as “little changed,” with only five of the 12 Fed districts reporting slight growth. In contrast, three districts were flat, and four reported declines.
The …