One in Three Consumers Plan to Spend More Money This Holiday Season, Citing Fear of Higher Tariffs
A recent survey by CreditCards.com has found that one in three consumers plan to spend more money this holiday season, with the top motivation being fear of higher tariffs under President-elect Donald Trump. Additionally, nearly a third of respondents expect to take on more debt to make their purchases.
According to the survey, 39% of consumers are planning to buy more because of their fear of higher tariffs, while 22% plan to make a large purchase, such as electronics or home appliances. The survey also found that 34% of consumers are stockpiling essentials, with toilet paper, nonperishable food, medical supplies, and over-the-counter medications being the most popular items to stockpile.
The survey’s findings suggest that consumers are anxious about the potential impact of tariffs on prices, with 30% planning to go into or worsen debt to buy things now. The fear of higher prices is driven by concerns about the potential impact of Trump’s proposed tariffs, which include a 20% tax on imports from countries like China and Mexico, as well as a 25% tariff on Canada and Mexico.
Despite the potential impact of tariffs on prices, some top CEOs have warned that the move could lead to price hikes, including the CEO of Dollar Tree, who stated that the company may be forced to increase prices and stop selling some products entirely. However, the incoming Trump administration has downplayed the impact of tariffs on prices, citing the creation of jobs, investment, and lack of inflation in the first term of Trump’s presidency.
