In 2025, tariffs on imported goods have become a key factor shaping how consumers shop and spend their money. Tariffs are taxes placed on goods brought into a country from abroad. When these taxes rise, they generally increase the cost of products, pushing prices higher for everyday consumers.

This situation affects almost every part of the economy—from what people buy, to how brands and retailers adjust their offerings. Understanding these shifts is essential because consumers' reactions to tariffs are not just about paying more; they also reflect deeper changes in shopping habits, brand loyalty, and value perception.

Rising Prices and Changing Priorities

More than eight in ten consumers have changed or plan to change their shopping behavior because of tariffs. Price increases caused by tariffs have prompted many shoppers to rethink what they value and what they consider necessary purchases. While some consumers continue buying essential goods regardless of price, many delay purchasing non-essential items like electronics, jewelry, or luxury goods.

Younger consumers, such as those in Gen Z and millennials, are particularly price-conscious. They tend to reduce spending on non-essentials and actively seek discounts and promotions to save money. Older generations like baby boomers generally show less change in buying habits, partly because their spending on discretionary items is already limited.

Brand Loyalty Under Pressure

Tariffs are putting brand loyalty to the test. While many consumers claim they will stay loyal to brands they trust even if prices rise, this loyalty is not absolute. Around 23 percent of consumers are delaying purchases of non-essential goods, and about 48 percent are actively seeking deals to manage costs.

Younger shoppers are more willing to switch brands to find better prices, whereas older consumers prioritize trust and familiarity. This mix of behaviors shows that companies must balance maintaining loyal customers and appealing to cost-conscious buyers by offering perceived value.

Sector-Specific Impacts

Not all industries feel tariff impacts the same way. For example, technology products such as computers and televisions have seen reduced sales due to higher costs. Apparel and beauty products experience price hikes that influence buying decisions as consumers become more careful.

Despite tariff-driven price rises, online shopping continues to grow. E-commerce often offers better prices and convenience, factors that appeal to budget-conscious consumers trying to maximize value.

Retailers’ Response to Changing Consumer Behavior

To keep customers coming, retailers are adopting strategies such as discount sales, promotions, and adjusting product offerings. Many are focusing on value-first engagement, curating product selections that provide cost savings or clear benefits to consumers.

The retail landscape is also adapting by enhancing online shopping experiences. With consumers wary of rising costs and economic uncertainty, many prefer the flexibility and savings that e-commerce platforms offer.

Economic Context and Consumer Sentiment

These changes occur within a broader economic setting marked by rising inflation and uncertainty about trade policies. Consumer confidence has declined sharply in 2025, influenced by tariff announcements and fears of further price increases.

Borrowing costs for consumers have also remained high amid tighter monetary policies, limiting spending ability. About 91 percent of consumers have been aware of tariffs, showing how tariff-related news pervades public discussions and affects attitudes.

At the household level, many people report feeling direct financial pressure from tariffs, leading to more careful budgeting and selective spending. This shift in behavior may last as trade policies continue to evolve.