March consumer retail spending data came in hotter than expected yesterday – led by surging motor vehicle and parts sales.

Up a whopping 5.3% month-over-month, auto and auto parts sales seem to have been impacted by those consumers who wanted to get ahead of looming 25% tariffs that took effect on April 2.

Consumers spent now to ultimately save money later.

All this spending was in direct opposition to the University of Michigan consumer sentiment survey, which reported that sentiment fell for the fourth straight month, plunging 11% in March.

Furthermore, consumers are increasingly worrying about the potential rise in unemployment for the fifth straight month.

What would drive consumers to spend if they are worried about the economy and their job security?

The answer lies solely with Trump’s tariffs.

But why the particular run on autos and car parts?

According to the OEC, vehicle imports and auto parts amounted to $87.2 billion last year, making them one of the largest categories of all imported products into the United States.

Given the size of the import market, the effects of the 25% tariff are staggering.

Approximately 50% of all new vehicle sales in the United States are imported. The United States is the largest importer of auto parts in the world.

Tariffs raise prices for the end consumer as companies pass along the increased cost.

Furthermore, in addition to price hikes, the very nature of tariffs and the retaliation America is seeing from foreign countries will also result in supply-chain disruptions, which in turn can lead to further price increases as demand outpaces the limited supply.

In particular, auto parts are a significant component of the category, as fewer parts are made locally in the United States.

Parts are key. They are used to manufacture new vehicles, but consumers also need parts to keep their current cars running.

And their current vehicles are old.

Consider that the average age of a passenger car on the road today in America has been steadily increasing.

The Bureau of Transportation Statistics shows that ten years ago, the average age of a passenger car in America was 11.5 years. Today, it is over 14 years old.

S&P Global Mobility found that the majority of Americans are holding onto their cars longer, due to increasing replacement costs.

Not only is the price of a new vehicle increasing – the average new vehicle in America is now north of $48,000 – but coupled with increased insurance costs, it is no wonder that more people are continuing to drive their decade-plus-old vehicle.

There is an incentive for the consumer to keep their current vehicle running, especially for lower-income families, as they cannot afford to replace a car that no longer works.

Furthermore, a vehicle is often key to keeping one’s employment. If you can’t get to work, your employment isn’t going to last.

So, the car must keep going.

The takeaway: don’t be fooled into thinking that the auto sector – or the economy is booming; the numbers merely reflect a pull forward of spending to ultimately save the consumer from Trump’s tariffs.