Americans Cut Spending Amid Rising Costs from Trump Tariffs, New Report Reveals

Across the United States, consumers are beginning to feel the tangible effects of the Trump administration's sweeping tariffs, as new data reveals a sharp shift in summer spending plans. Many Americans say rising prices due to these tariffs are leading them to cut back on travel and recreational activities, traditionally a peak season for leisure spending.

A recent survey conducted by personal finance company WalletHub found that 45 percent of respondents reported tariffs are directly impacting their travel decisions this year. The mood among consumers is marked by caution: nearly two in three individuals surveyed indicated they intend to spend less this summer compared to last year. This trend signals potential trouble for sectors such as hospitality, tourism, and retail, which heavily rely on robust summer activity.

Similarly, an April survey by accounting firm KPMG highlights growing economic concerns, with half of U.S. consumers saying they are already reducing their discretionary spending because of the tariffs. What’s more, over 70 percent of those surveyed expect an economic recession within the next year, underlining widespread apprehension about the future of the national economy.

Shoppers and families across the country describe a challenging financial landscape. Raina Becker, a freelance copy editor, noted that “the tariffs are making high prices even more unreasonably high, to the point where ... what you’re charging is not even close to what this is worth.” Such sentiments are echoed by many struggling to adjust household budgets to account for elevated costs at grocery stores, gas stations, and other everyday venues.

Some families, like Philadelphia resident Brad Russell’s, are altering their travel traditions as a result. Instead of weeklong vacations at well-known destinations such as Disney resorts, Russell says his family will stick to affordable weekend getaways closer to home, anticipating continued price hikes throughout the summer. “We’re tightening up and recalibrating our expectations,” he said, reflecting a broader trend of scaling back.

The tariff policy changes, initiated through executive action since President Trump’s return to office in January, have targeted a wide array of imported goods. As these additional taxes filter down to consumer prices, economists warn the ripple effects could dampen economic growth, particularly if households continue to exercise caution with their spending during the crucial summer months.

With mounting concerns about inflation and the specter of a potential recession, businesses—large and small—are bracing for a quieter season than usual. The weeks ahead will be pivotal in determining just how deeply the tariffs will reshape American consumer behavior and the broader economy.