- Tariffs are projected to add $40.6 billion in extra costs for U.S. holiday shopping.
- Consumers will absorb about $28.6 billion of these expenses, raising average costs by $132 per shopper.
- Retailers are expected to cover the remaining $12 billion in tariff-related costs.
- Electronics, clothing, accessories, personal care products, beauty products, and toys will see the largest price increases.
- Experts warn higher prices could limit holiday spending and increase consumer debt.
American shoppers and retailers are facing an expected $40.6 billion in extra costs on goods sold during the holiday season due to recently imposed tariffs. The estimate is based on new data from LendingTree, Inc. and comes as higher import duties impact products arriving on store shelves nationwide.
According to LendingTree, consumers are set to bear the largest share of these additional charges, with costs rising by about $28.6 billion—an average increase of $132 per shopper. Retailers are projected to absorb $12 billion themselves as they contend with tariff increases impacting a wide range of product categories.
The CNBC report notes that the added expenses will be most pronounced for shoppers purchasing electronics, with these buyers expected to pay an extra $186 each on average. Clothing and accessories will see the next highest increases, with an estimated $82 more per shopper. For items such as personal care products, beauty goods, and toys, the additional cost is about $14 per person.
“While it may not be earth-shattering, it can have a real impact on many families. It could prompt people to cut back on gift-giving this year or lead to them taking on extra debt,” said Matt Schulz, chief consumer finance analyst at LendingTree, in the CNBC article.
These rising costs follow tariff measures implemented during President Donald Trump‘s administration, which drove up import and transportation costs. Although some companies attempted to bring in inventory before new duties took effect, most items currently in stores—and those arriving in time for holiday shopping—are now subject to higher prices.
Recent stock performance suggests companies selling non-essential goods have managed better compared to those focused on everyday staples. The Consumer Discretionary Select Sector SPDR Fund has seen a 7% gain so far this year, while the Consumer Staples Select Sector SPDR Fund declined 3%. The S&P 500 index has risen 16.3% in the same period.
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