Tariff Front-Running Caused Massive Import Surge in March
When the government reports first quarter GDP this week, brace yourself: the headline number could look downright recessionary. But don’t be fooled. The American economy, like Mark Twain, may be forced to declare that rumors of its death are greatly exaggerated.
Blame it on tariffs — or more precisely, on businesses behaving rationally ahead of them. Faced with the prospect of new duties later this year, U.S. companies did what any rational economic actor would do: they pulled forward massive quantities of imports. If you know prices are going up, you buy now, not later.
The Census Bureau’s March Advance Economic Indicators Report confirmed it Tuesday morning. Imports surged a jaw-dropping 5.0 percent month-over-month. Consumer
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