Source: Trucking Dive
Date: 16th July 2025

As household budgets tighten, Americans turn to budget brands and brace for rising costs on essentials.

Tariffs are taking a noticeable toll on U.S. consumer behaviour, with a recent market research survey revealing that 77% of Americans believe these levies will impact their household finances. A majority of respondents said they have already switched to cheaper brands or are reconsidering their purchasing decisions.

Essentials like groceries and clothing are seeing the sharpest price hikes, with two-thirds reporting increased grocery costs and over 40% noticing higher prices on apparel.

The concern extends beyond individual households—more than half of those surveyed believe tariffs will negatively affect the broader economy.

With new U.S. tariffs ranging from 25% to 40% set to take effect on imports from several countries starting August 1, consumers are adjusting their spending in anticipation of further inflation.

Retailers are now weighing how to manage these costs: whether to pass them onto shoppers, absorb them, or revise their product ranges.

This shift is especially evident in back-to-school shopping, where 73% of consumers expect to pay more due to tariffs and supply chain disruptions. Spending per child is projected to increase by over 21% from the previous year.

While many Americans may not follow every policy change, the financial strain is driving visible changes in brand loyalty, budgeting habits, and overall purchasing behaviour.