President Trump’s proposed tariffs are influencing some consumers to doom spend, according to a new survey.
A survey of 2,000 Americans conducted by CreditCards.com released this week found 1 in 5 American consumers are buying more products than usual as a result of Trump’s proposed tariffs. Within this group, 5% are buying significantly more, while 14% are purchasing slightly more; 29% say Trump’s tariffs are mostly driving this push, while 37% say the tariffs have somewhat of an impact.
Since Trump’s election, 28% of consumers have made a purchase exceeding $500, while 21% haven’t yet made a large purchase but plan to in the near future. Of those that have bought pricey items, 22% said the tariffs were a main factor, and 30% said they had some impact on their decision. The top items purchased were electronics (39%), home appliances (31%), and home improvement materials (25%).
Some consumers are also stockpiling items, the survey found. Since November, 22% said they’re stockpiling, while 20% haven’t but are planning to do so. Top items consumers are stocking up on include non-perishable food, toilet paper, medical supplies, and over-the-counter medications. Almost 30% of consumers also say they’re buying at least a few items to prepare for another pandemic.
While it’s “too soon to say” how these tariffs are impacting consumer spending habits, “they very well could cause some consumers to rethink their buying habits, especially when it comes to major purchases,” John Egan, credit cards, insurance, and personal finance expert contributor for CreditCards.com, said in a statement.
Nearly 20% of consumers say their recent buying habits are “doom spending”—spending $$ to ease stress over issues like the economy or politics, per the survey. In particular, younger consumers, especially Gen Z, have been opting for doom spending over saving $$.
Zoom out: While President Trump has enacted a 30-day pause on tariffs against Mexico and Canada, the recent extra 10% tariff on Chinese goods could impact the prices of big-ticket items like electronics and home appliances. John W. Mitchell, president and CEO of electronics industry association IPC, said in a statement last week that Trump’s tariffs “will raise manufacturing costs, disrupt supply chains, and drive production offshore, further weakening America’s electronics industrial base.”