As holiday shopping season approaches, Americans could start to feel the delayed sting from tariffs introduced by President Trump earlier this year. While the early impact was softened by by companies build up inventories and them just eating up the costs, economists believe that prices will begin to feel pressure on everyday goods such as coffee, furniture and clothing prices. Bank of America predicts that tariffs will be adding about a half percentage point to the core PCE measure the federal Reserve uses. With tariffs BofA estimates that inflation would rise to 2.9% in September.
For consumers, shoppers are bearing about 50%-&0% of total tariff costs, while businesses bear the rest. These visible price increases, can shape how consumers feel about inflation, even influence people's spending behaviors. Economists warn that with holiday season approaching we could see further strain on imported goods like artificial Christmas trees. Had these inflation issues been in place during 2024 holiday season, shoppers would have spend an additional $40.6 billion. While some of these numbers might not dominate inflation statistics, one thing is clear that tariffs will make holiday spending a litte more expensive this year.
https://www.cnbc.com/2025/10/31/tariffs-are-expected-to-start-showing-up-more-in-consumer-prices-as-holiday-shopping-season-starts.html
3 comments:
As one who tends to push their holiday shopping to the last second this news isn't great. The tariffs that some may have forgotten are having a back-end effect that I hadn't even thought of. It'll be interesting to see how this year's spending compares to years past.
Tariffs are starting to hit just as holiday shopping ramps up. Everyday items like clothing and furniture could cost more, and even artificial Christmas trees aren’t spared. It’s a tough time for consumers trying to stretch their budgets.
Tarrif increases in combination with the holiday shopping season seem like a recipe to put more pressure on consumers financially. It will be interesting to see how the tariffs have an effect on the market environment surrounding the holidays
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