60% of US shoppers won't buy if tariffs raise prices over 10%: Survey

"Market volatility and increased costs due to tariffs are causing US shoppers to change their spending habits," said Eric Eichmann, chief executive officer, ESW. "Our data finds that younger, Gen Z consumers are far more likely than older Boomers to feel unprepared for price hikes, and have already curtailed their spending in anticipation. As global retailers and brands strategise to offset these new developments, they must prepare to offer more perceived value, price transparency, and flexibility in order to retain brand equity and loyalty."

Seventy per cent of all consumers say they will reduce overall spending once tariffs go into effect. Millennials are leading this trend, with 78 per cent planning to cut back. Boomers are the most likely generation to stop buying certain imported goods, with 54 per cent indicating they’ll avoid these items.

Gen Z shoppers are taking a proactive approach, with 58 per cent pulling forward big-ticket purchases like iPhones, computers, and even champagne to avoid tariff-driven price increases. Across all age groups, 45 per cent of consumers are accelerating electronics purchases, and 37 per cent are stocking up on groceries, as per the survey.

Tariffs are expected to impact non-essential categories the most. Sixty-eight per cent of consumers plan to cut back on electronics, 61 per cent on apparel and accessories, and 51 per cent on home goods—highlighting the vulnerability of discretionary spending.

Despite looming tariffs, some categories remain protected. Thirty-three per cent of consumers say they will continue buying pet supplies no matter what, making it the second most protected category after groceries.

Faced with rising costs, Millennials are showing a strong preference for flexible payment options. They are 36 per cent more likely than other generations to prefer ‘buy now, pay later’ (BNPL) solutions—even if it means accepting surge pricing.

The US study, ‘Impact of Tariffs on Purchasing Decisions’, includes data from a nationally representative sample of 1,008 adult consumers collected in April 2025.

ALCHEMPro News Desk (RR)