As retailers report duties have been impacting their pricing policies, a recently released survey indicated 72% of consumers in the United States expect tariffs to make 2025 their most expensive holiday shopping season yet, with other economic disruptions also affecting year-end spending.
According to a report from Clever Real Estate, 56% of consumers are cutting back on holiday spending so they can better afford basic living expenses this year, and 38% said this is the first year they’ve worried about their ability to afford holiday shopping.
The real estate service pointed out its survey suggested the average consumer would spend $550 on holiday shopping this year, down from $600 in 2024, with top reasons for cutting back on the seasonal spend including inflation, cited by 55%, and tariffs (38%). Some 15% reported scaling back spending plans after losing SNAP benefits.
As both shoppers and retailers weighed how they would address macroeconomic conditions as they approached the holiday season, 72% of consumers said the economy was worsening, and 55% said they felt guilty spending on gifts when others can’t afford essentials. Despite plans to limit spending, 28% of consumers worried they would go into debt this year due to holiday spending, with 14% already planning to buy gifts on a credit card they can’t pay off. As such, 68% of consumers surveyed said the holidays have become more financially stressful than joyful.
Consumers are wary of what they’re paying this holiday season, with 71% saying they believe retailers are passing the full cost of tariffs on to consumers, 56% anticipating gift shortages and 46% changing how they shop.
As to the source of higher holiday prices they’ve been expecting, 30% blamed the Trump administration, 28% inflation, 16% tariffs, 14% corporate greed and 12% the former Biden administration.
At the same time, 15% of consumers said they would buy a more expensive American-made product if tariffs raised the prices of imported goods. As such, 38% of consumers said lower tariffs would help them afford holiday spending, even as 69% pointed to lower grocery prices, and 24% said the availability of SNAP benefits would help. Support for SNAP was strong, with 60% of consumers backing increased benefits during the holidays.
