American Consumers’ Economic Outlook: Spring 2025
Published 21 April 2025
The effects of tariffs are causing Americans to reassess their purchasing behaviours. Some are stockpiling to minimise short-term exposure to price hikes, while others are pulling back on discretionary spending or retooling their investment portfolios. A pervading sense of financial anxiety overshadows these changes.
- Bracing for Rising Costs: It’s estimated that tariffs will increase the cost-of-living for Americans by approximately $4,600 annually (Center for American Progress, 2025). Consequently, 83% of Americans anticipate changing their shopping behaviours (Numerator, 2025). Those with the means to do so are pushing forward expensive purchases like appliances or stockpiling non-perishable groceries. Meanwhile, young women are already starting to trim discretionary purchases, especially those related to self-care and beauty. Others are concerned about price increases limiting their ability to pay for hobbies, whether cooking, reading, gaming or caring for pets.
- Searching for Alternatives: Consumers are reassessing where and how they make purchases. Some anticipate demand for second-hand and thrifted goods will increase, since they won’t be subject to tariffs. On TikTok, Chinese influencers are claiming consumers can side-step tariffs by ordering products direct from Chinese factories (this isn’t true, consumers will need to pay import duties).
- Savings on the Mind: In April, 85% of Americans said they were concerned about the impact tariffs would have on their personal finances, up by 4 percentage points from February (Numerator, 2025). Some 72% of adults fear a recession and 70% are concerned about stock-market volatility (Consumer Affairs, 2025), leading 41% to adjust their investments (CNBC, 2025).
- Money Dysmorphia: Despite rising prices, displays of wealth on social media aren’t stopping, which may lead some people to feel a disconnect between how their perceive their finances and their financial reality – a phenomenon called money dysmorphia. Addressing this gap, American online publication The Cut ran Debt Week in April 2025, sharing stories about the repercussions of overspending. Meanwhile, about 20% of Americans report doom spending – shopping driven by anxiety about the future – suggesting that candid conversations about financial management are relevant to a broad swathe of consumers.
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