Most consumers in the United States believe they are shouldering the cost of tariffs, and many are changing their approach to shopping, according to research conducted by global strategy consultancy L.E.K.
In all 68% of consumers think they bear the cost of tariffs, L.E.K. noted. At the same time, the current economic environment is weighing on the view consumers hold of the future, the consultancy stated, with only 26% saying that they think their financial circumstances will improve over the next year. In the meantime, 49% have changed their shopping habits in response to higher prices, and 60% are comparing prices more often.
As they consider the effects of tariffs on pricing, 61% of consumers consider durable goods to be too expensive today, the highest proportion making that assessment, followed by apparel and accessories, for 57%; beauty products, for 50%; and pet food and supplies, for 48%.
Yet, when considering on what products they will reduce spending 74% of consumers pointed to apparel and accessories, 68% to durable goods and 63% to beauty products. Categories for which consumers are most reluctant to cut spending are pet food and supplies, cited by 27%; dry/frozen grocery, by 36%; and fresh/perishable groceries, by 37%.
L.E.K. observed most consumers will trade down to lower-priced brands within categories to reduce their spending rather than to stop purchasing altogether. However, consumer sentiment about the beauty category is a bit different, with 55% of shoppers reducing buying frequency and 27% considering brand switching.
The L.E.K. study is based on a July pulse survey of a nationally representative, demographically balanced sample of approximately 2,000 U.S. adults, the company maintained.
