American Consumers to Spend Billions More This Holiday Season Due to Trump-Era Tariffs
American consumers are expected to have wallets billions of dollars lighter this holiday season, according to a recent analysis by LendingTree. The increased costs stem from tariffs imposed during President Donald Trump’s administration, which continue to impact prices on a variety of consumer goods.
Sunday marked six months since the announcement of the broad “liberation day” tariffs. Since then, prices for select food items and consumer products have risen. Now, as holiday merchandise that has been stored in warehouses for months finally reaches store shelves, consumers are beginning to feel the full impact of these added costs.
### LendingTree’s Analysis on Holiday Spending
LendingTree, an online lending marketplace, used 2024 winter holiday spending data to assess the financial effect of the tariffs on the upcoming season. The company estimates that the new tariffs will increase total holiday costs for both consumers and retailers by approximately $40.6 billion.
Of this amount, consumers are expected to bear the brunt, shouldering an estimated $28.6 billion in extra expenses. This increase translates to about $132 more spent per shopper. Retailers, meanwhile, are expected to cover the remaining $12 billion in elevated costs.
Matt Schulz, LendingTree’s Chief Consumer Finance Analyst, commented on the findings:
“For most Americans, spending an extra $132 at the holidays is significant. While it may not be earth-shattering, it can have a real impact on many families. It could prompt people to cut back on gift-giving this year or lead to them taking on extra debt. That’s a choice no one wants to have to make.”
### Impact on Consumer Behavior and Retailers
Retail analysts have told CNBC that they expect consumers to purchase fewer items this holiday season as a result of higher costs caused by tariffs. Schulz echoed this sentiment, calling it an “unfortunate reality” many consumers will face.
He added, “That might mean giving fewer items as gifts, or it could mean having to absorb the higher costs to give your loved ones what they want. I doubt we’ll see a huge drop-off in the amount of electronics and clothes gifted this year, simply because they are what many people want. However, for some, higher prices may leave them with no other choice.”
### Sectors Most Affected by Tariffs
LendingTree’s analysis highlights electronics buyers as facing the biggest increase in holiday spending, with an average additional cost of $186 per shopper. Clothing and accessories follow, with an estimated added cost of $82 per shopper.
As the holiday season approaches, shoppers and retailers alike may need to adjust their plans and budgets in response to these increased prices driven by ongoing tariff policies.
https://www.cnbc.com/2025/11/02/trump-trade-holiday-shopping-lending-tree-tariffs.html