Report: Shoppers Spending $47 More Per Month Under Trump's Tariff Regime

Yahoo

3 days ago

Many brands, retailers and shoppers are breathing a sigh of relief following President Donald Trump's latest tariff announcement.
With just hours before a three-month suspension of triple-digit tariffs on China was set to expire, the president opted to extend the pause, instead maintaining a baseline tariff rate of 30 percent on products shipped into the United States.
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While the last-minute about-face will save importers from paying the bulk of the duties (set in April at the astronomically high rate of 125 percent) for at least 90 more days, neither they — nor their consumers — are getting off scot free. The 30 percent rate set forth by the administration is still among the highest of any of America's global trading partners, and its impact is underscored by U.S. companies' continued reliance on China sourcing.
American Apparel and Footwear Association (AAFA) president and CEO Steve Lamar said that while the administration's continued engagement with China — and its extension of the bilateral tariff pause — was the right call, helping avoid 'devastating consequences' like business closures, 'the constant cycle of deadline delays and vague deal terms has kept American companies and consumers stuck in the same holding pattern since April 1.'
'This pattern has and continues to stifle innovation, strategic decision-making, and long-term growth,' Lamar said.
As negotiations with China move forward over the coming 90 days, the AAFA is urging the administration to include a non-stacking provision within the trade agreement, similar to the provisions included in deals with Japan and the European Union. That way, U.S. companies and their clientele won't be hit with even higher tariff bills due to existing duties.
'Even with the pause on the worst-case rate, a 30 percent tariff on our largest trading partner is still untenably high. We can't forget that these tariffs are being added on top of existing ones including the nearly century-old Smoot-Hawley MFN tariffs and the Section 301 tariffs,' Lamar said. 'When stacked on top of these already steep tariffs, it amounts to double taxation on hardworking American families for everyday essentials like clothing and footwear.'
The point is underscored by recent consumer data. E-commerce marketing automation platform Omnisend released insights this week showing that the average American adult is already paying $47 more per month due to heightened tariffs on U.S. trading partners, amounting to a $12.2 billion-per-year increase in national spending. One in every seven households reported monthly budget jumps of more than $100.
Though the bulk of Trump's so-called 'reciprocal' just tariffs took effect last week, 66 percent of the 1,200 shoppers surveyed said they've already clocked price hikes at their go-to retailers. Nearly two-fifths (39 percent) said they noted higher prices when shopping on Amazon, while 30 percent said the same about e-commerce marketplace Temu and 27 percent made similar observations about Walmart. Nearly one-quarter of shoppers said fast-fashion phenom Shein had raised prices.
With MSRPs climbing on popular Chinese marketplaces, a significant majority (68 percent) of consumers said they've turned away from the Temus, Sheins and AliExpresses of the world, with higher prices being the trigger for more than one-third of them. More than 40 percent said dropping prices is the only course of action for these firms if they want to regain market share.
And despite the heightened prices they referenced on American-owned marketplaces, 64 percent of consumers said they were turning to Amazon and 49 percent said they were looking to Walmart for alternatives. Some are relying on platforms like eBay (17 percent) to fill the void, and far fewer are looking to marketplaces like Etsy (around 11 percent) and Depop or Poshmark (about 6 percent).
There may be some preference for Made in the USA, but it's not the primary factor driving consumers' decisions — price is. Case in point: just 43 percent of shoppers said they would be open to paying a premium for American-made products, while 32 percent said they would not.
Some shoppers believe turning to North American neighbors will help them get around tariff impacts. According to Omnisend's data, 23 percent of American adults are already purchasing goods from Mexico or Canada because they've found them to be cheaper. More than one-quarter (26 percent) said they plan to do the same if prices continue to rise.
As Trump's tariff agenda has become more entrenched and its impacts have trickled down to store shelves, many Americans have found themselves disenchanted with the administration's agenda. Nearly half (49 percent) of surveyed shoppers said the upsides of collecting tariffs aren't worth the cost to consumers. Just over one-quarter (28 percent), by contrast, support the continuation of the policy.
The remainder — 27 percent — are 'caught in the middle,' Omnisend analysts wrote, and 'likely adjusting habits day by day.'
The president, for his part, isn't backing down despite flagging consumer sentiment and consternation from economists.
'Trillions of Dollars are being taken in on Tariffs, which has been incredible for our Country, its Stock Market, its General Wealth, and just about everything else. It has been proven, that even at this late stage, Tariffs have not caused Inflation, or any other problems for America, other than massive amounts of CASH pouring into our Treasury's coffers,' he wrote on Truth Social Tuesday afternoon. 'Also, it has been shown that, for the most part, Consumers aren't even paying these Tariffs, it is mostly Companies and Governments, many of them Foreign, picking up the tabs.'
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