U.S. Consumer Spending Declines Amid Trump Tariffs, New Report Shows

Americans are tightening their budgets this summer, with many attributing their reduced spending directly to the impact of President Donald Trump's recently enacted trade tariffs. As everyday costs rise, households across the country are reconsidering not only discretionary purchases but also fundamental plans for travel and leisure during the warmer months.

According to a recent survey from WalletHub, 45 percent of respondents reported that tariffs are already affecting their summer travel plans. Even more telling, nearly two out of every three individuals polled indicated that they will scale back on spending compared to last year. For many, the financial strain of higher prices resulting from new import taxes is prompting a shift toward more cautious consumption habits.

Further highlighting these concerns, a separate poll conducted in April by the accounting firm KPMG found that half of those surveyed are actively cutting back their expenses due to tariffs, and more than 70 percent anticipate a recession within the next 12 months. This growing sense of economic unease appears to be influencing decisions on everything from summer vacations to everyday shopping choices.

Some Americans are speaking out about the tangible effects of these policies on their daily lives. “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,” lamented Raina Becker, a freelance copy editor. Others, like Brad Russell, a father of two from Philadelphia, have echoed her frustration. Russell explained that his family will forgo their customary weeklong trips to major resorts, opting instead for shorter, more affordable outings closer to home in an effort to manage expected cost increases.

The trend comes as the Trump administration, after returning to power in January, invoked emergency powers to slap significant new tariffs on a broad array of imports. The move has generated widespread debate over its economic consequences, with critics warning that higher prices could dampen consumer confidence and slow growth at a precarious moment for the U.S. economy.

As the summer season unfolds, the full impact of these tariffs on household budgets and broader economic sentiment will continue to be closely monitored. For now, many Americans are responding to the uncertainty with restraint, focusing on financial prudence amid what some see as growing signs of trouble ahead.