- A majority of Americans (82%) are concerned about inflation and its impact on pricing for essential items like food, housing and gasoline.
- Of the 82% of Americans who believe tariffs will affect the prices of everyday goods that they purchase, 47% expect prices to increase on some goods while 40% expect prices to increase on all goods.
- Half of Americans (51%) have changed their spending habits in anticipation of tariffs, especially Gen Z (67%) and millennials (61%).
The flurry of tariff announcements that have taken place these past few months have Americans on notice, with many adjusting their wallets as a result.
According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma among 2,000+ U.S. adults ages 18 and older, roughly three quarters of Americans (73%) say they are aware of the imposed and pledged tariffs on imports from China, Canada and Mexico, and a majority of them (82%) believe these tariffs will impact the prices of everyday goods.
Consumer anticipation of further cost shifts come at a time when 82% of Americans are concerned about inflation and its impact on pricing for essential items like food, housing and gasoline. As prices for essential items increase / remain elevated, many Americans are dependent on credit, especially young people – 45% of Gen Z and 46% of millennials say they rely on credit cards.
Spending behaviors vary in the wake of tariffs
A majority of Americans (87%) assume tariffs will increase prices – whether it be price hikes on some goods (47%) or on all goods (40%). Regardless of their expected reach, half of Americans (51%) have changed their spending habits in anticipation of tariffs, especially Gen Z (67%) and millennials (61%).
In terms of how Americans are preparing for tariffs, their spending behaviors run the gamut. Many are cutting back on non-essential purchases to save money (62%), while others are getting thrifty by looking for cheaper alternatives, like store brands or secondhand items (55%).
On one end of the spectrum, people aren’t waiting out the impact, but instead are choosing to stock up on certain goods now in case prices go up (43%), buying more domestically made products (29%), and even making major purchases (i.e. car, appliances) now to get ahead of potential tariff impacts (18%). On the other end, consumers are taking the “wait and see” approach, with 37% delaying major purchases until they understand the impact of tariffs.
According to consumers, no item will be spared
When asked which everyday goods consumers expect to be more costly as a result of tariffs, a whopping 84% expect groceries and food items to be hit the hardest, followed by electronics and appliances (69%), vehicles and auto parts (69%), gasoline and energy costs (66%), clothing and apparel (64%), household essentials, such as cleaning supplies (54%), furniture and home goods (49%) and children’s toys (39%).
Not everyone is fazed by tariffs – sometimes out of necessity
Tariffs have Americans split down the middle when it comes to spending adjustments, with nearly half of Americans (49%) saying they have not changed their spending habits in anticipation of tariffs. However, reasoning is nuanced, especially when broken down by Americans’ income status.
The main reasons people aren’t adjusting their spending include the unwillingness to change their spending unless they see prices actually shift (42%), and having other priorities to focus on right now (39%). The latter applies to about half (51%) of Americans with less than $50K in household income (HHI), compared to 29% of those with a HHI of $100K+. This likely reflects the reality of those who deal with more financial instability, and don’t have the flexibility to cut back when they’re perhaps barely making ends meet. This is further supported by the fact that 52% of Americans with a HHI under $50K do not feel financially stable right now, compared to only 16% of those earning $100K or more.
“While tariffs are a complex concept, more than three quarters (77%) of Americans say they know what a tariff is — likely because they’ve been a major focus in recent economic discourse,” said Courtney Alev, consumer financial advocate at Credit Karma. Imposed and pledged tariffs come at a time when consumers are grappling with an elevated cost of living, so we’re seeing many people take precautions to protect their finances in anticipation of potential price increases for certain consumer goods. For those who are concerned about their finances right now, focus on what you can control. Cut back spending where you can, contribute to an emergency savings fund, and if you’re able to, pay down any debt you may have — starting with your highest interest debt first.”
Methodology
This survey was conducted online within the United States by Qualtrics on behalf of Credit Karma from February 27, 2025 to March 11, 2025 among 2,074 adults ages 18 and older.