Americans Reduce Spending Amid Trump Tariffs: New Report Highlights Economic Impact
Americans plan to cut summer spending amid concerns over Trump's trade tariffs, reports suggest.
American consumers are anticipating a leaner summer as the effects of recently imposed tariffs ripple through household budgets. Many families are already scaling back travel plans and curbing discretionary spending, reflecting growing uncertainty about the nation’s economic trajectory.
According to findings from a WalletHub survey, nearly half of respondents (45 percent) acknowledged that tariffs on imported goods are forcing them to rethink or revise their vacation plans. Moreover, almost two-thirds stated they would spend less this summer compared to last year, signaling a widespread shift in consumer sentiment. The data suggests a direct connection between new trade policies and everyday financial decisions for millions of Americans.
The concerns are echoed by businesses and households alike. A recent poll conducted by KPMG in April—which included over 1,500 adult Americans—found that half of those surveyed are actively cutting back on expenditures because of the tariffs. Alarmingly, more than 70 percent of respondents indicated they expect the United States to face a recession within the next year, compounding anxieties about job security and cost-of-living increases.
This financial strain is particularly evident in personal accounts from families across the country. Raina Becker, a freelance copy editor, observed that prices have risen so sharply that many basic goods now feel “not even close” to being worth their sticker price. Meanwhile, Philadelphia resident Brad Russell described adjusting his family’s summer itinerary by opting for shorter car trips to local attractions instead of longer stays at major resorts, such as Disney, due to anticipated price hikes.
The current landscape follows President Donald Trump’s decision earlier this year to utilize emergency powers, resulting in substantial new tariffs on a broad range of imported products. Retailers warn that the added costs are being passed directly on to consumers, intensifying concerns about inflation and diminishing purchasing power.
As summer approaches, Americans are preparing for more modest vacations and reduced leisure spending, with many households bracing for further economic challenges. The prevailing mood among consumers reflects mounting apprehension over prices and a cautious approach to non-essential expenses in the months ahead.
