Dive Brief:
- Nearly eight in ten (77%) Americans believe tariffs will impact their household finances, according to a survey of 1,000 U.S. adults by the market research firm Savanta.
- While 71% of survey respondents said they have changed or are considering altering their purchasing decisions due to tariffs, 61% said they have bought cheaper brands in recent months to combat price hikes. Forty-one percent said tariffs are already disrupting their finances.
- Two-thirds of survey respondents have seen price increases on groceries, and 42% have seen a rise in clothing prices.
Dive Insight:
U.S. consumers are already shifting their spending habits due to tariffs.
Americans are feeling the impact of tariffs on their wallets, according to the survey. More than half (54%) of respondents believe that tariffs will hurt the economy, while 48% said they expect tariffs to increase over the next year.
“Americans may not follow every trade policy detail, but they know when their household expenses go up,” Kyle Gollins, head of commercial in the Americas at Savanta, said in a statement. “What used to be a geopolitical lever is now a household pressure point.”
President Donald Trump announced this week tariff rates the U.S. will charge on imports from certain countries following a 90-day pause. Trump sent letters to the heads of countries including Japan, South Korea and South Africa outlining rates. The reciprocal tariffs, ranging from 25% to 40%, will take effect starting Aug. 1.
Retailers are reassessing their pricing strategies to account for tariffs. Among the factors retailers need to consider are whether to pass the price increases on to consumers, how high they should raise their prices and if they need to adjust their product assortment, according to analysts.
Meanwhile, as retailers decide how to navigate tariffs, other reports suggest that shoppers are already bracing for higher price tags on school supplies. A recent Coresight Research report found that 73% of back-to-school shoppers expect price increases stemming from tariffs on imports and supply chain issues. Consumers anticipate spending $378 per child on back-to-school items, marking a 21.5% jump from $311 last year, according to the report.
“We’re seeing real-time behavioral shifts, from brand loyalty to budgeting,” Jennifer Kim, research analyst at Savanta, said in a statement. “Even for those who don’t follow trade headlines, they’re feeling the economic stress.”