President Trump's tariffs are uncertain after they were paused for Canada and Mexico, but a negotiating window remains open until they go into force for China on Feb. 10.
Tariffs are effectively taxes on imports into the U.S., which imported around 36% of consumer goods in 2022, according to the World Bank.
Despite uncertainty, 49% of Americans say they will buy less and 40% will switch to cheaper brands if tariffs raise prices, according to a survey of 1,022 adults by coupon service Smarty.
And half of those surveyed said they will switch to secondhand or local alternatives if tariffs raise prices.
“This research shows that the imposed tariffs will lead to shifts in consumer spending habits this year, with nearly half of US consumers planning to buy less frequently and or switch to cheaper brands if prices continue to increase," said Vipin Porwal, founder of Smarty. "Other consumers are likely to start stocking up on items like clothes and electronics before tariffs take effect, while a large percentage are considering to delay any major purchases for new homes and vehicles.”
What purchases will Americans hold off on if tariffs increase prices?
Cars, appliances and furnture are the purchases respondents said they were the most likely to hold off on because of tariffs.
Automakers with plants in Mexico and Canada could see tariffs slapped on imported vehicles and costs passed onto consumers, if tariffs in those countries go back on the table.
Some 24% of respondents said they would pause buying a car if prices spike up from the tariffs.
"While consumers need to keep buying their daily essentials, we could see a wide swath of Americans simply holding off buying the things they don’t need until seasonal sales discounting provides some relief," Porwal said. "Savvy consumers will look to ramp up savings and rewards opportunities any way they can.”
Email Dieter Holger at dholger@consumeraffairs.com.