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US Consumers Increase Purchases Amid Concerns Over Trump Tariffs, Report Shows

by Mich M.
02/18/2025
in Tariffs & Duties

A report from CreditCards.com revealed that one in five Americans have been purchasing more items than usual due to concerns about potential price increases linked to President Donald Trump’s tariff policies. This consumer behavior reflects growing anxiety about economic uncertainty and the potential inflationary impact of tariffs.

Tariffs generally increase the cost of imported goods, leading businesses to either absorb these costs or pass them on to consumers through higher prices. This can contribute to inflation as production costs rise, particularly in industries that rely on foreign materials. In response, many consumers have begun stockpiling non-perishable goods, such as food, toilet paper, and medical supplies, to avoid paying higher prices in the future.

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The report noted that 22% of respondents said tariffs had a significant impact on their decisions to make large purchases, while 30% reported some impact. Wall Street has expressed concerns that these tariffs could accelerate inflation in the U.S., hinder the Federal Reserve’s ability to cut interest rates, and slow economic growth, with uncertainty around trade policies affecting consumer confidence.

The report also found that 20% of Americans characterized their recent purchasing behavior as “doom spending,” driven by concerns over economic instability. Additionally, 23% expect their credit card debt to increase or worsen this year.

Businesses are grappling with the uncertainty of shifting trade policies, with some executives describing the challenges of navigating an unpredictable environment that could disrupt global trade and force companies to consider relocating production to the U.S.

Your go-to for supply chain report news updates: The Supply Chain Report. For international trade tools, see ADAMftd.com.

#TradeTensions #TariffImpact #ConsumerBehavior #EconomicUncertainty #GlobalTradeTrends

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  • Home
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© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.