Consumers’ Tariff Limits Impact Spending Habits

⁣ Updated June 10, 2025

Consumers are showing thier limits on how much they’ll tolerate in tariff-related price increases, according ⁢to a recent survey ‍by e-commerce firm ESW. The survey highlights differences in how various generations plan to react to potential price⁢ hikes due to tariffs.

Six in ten consumers said they would not pay more than 10% extra for products affected by tariffs. A larger percentage, 70%, indicated they would reduce overall spending⁢ if tariffs take effect. ⁢Though, ⁤the‍ survey suggests that younger and older consumers may react differently to these tariff implications.

Younger consumers, particularly Millennials (ages 30-44) and Gen Z (ages 18-29), are more inclined to tighten their budgets in response to ⁤higher costs.gen Z shoppers are the most likely to stock up on electronics and groceries before tariffs hit. Additionally, over 25% of Millennials⁣ said they would consider using “Buy Now, Pay Later” ⁣services to manage tariff-related⁢ price increases.

in⁤ contrast,over half of Baby Boomers⁣ (ages 60+) are considering ⁢purchasing fewer imported goods as a direct⁢ result of tariffs.

“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,” said Eric Eichmann, ESW chief executive officer.

When it comes to discretionary spending, 68% of consumers⁢ said they would likely cut back on ‍electronics purchases if prices increase due to tariffs. Clothing and home ⁣goods are also likely to be skipped. Groceries and pet supplies are⁤ the least likely to be affected by these spending cuts.

“Price-sensitive consumers, especially Millennials and Gen Z, are quick to reassess purchases that can be delayed or substituted,” the report stated.

What’s next

As tariffs continue to be a factor in international ‍trade,businesses and consumers will ‍likely continue to adapt their strategies to mitigate the impact ⁣on their wallets and bottom lines. Monitoring consumer behavior and adjusting business practices will be crucial in navigating the evolving economic landscape.