As the holiday shopping season approaches, consumers are bracing for increased prices due to ongoing tariffs. A recent analysis by Lending Tree suggests that holiday shoppers may need to budget an additional $132 each on average, reflecting the anticipated costs associated with tariffs that could impact their purchases more than in the previous year. In total, this could translate to an additional $28.6 billion that would be passed on to consumers.
The analysis highlights that electronics, in particular, are likely to see the steepest rise in prices, with an estimated additional spending of $186 per shopper. Clothing and accessories will also contribute significantly to the tariff burden, adding around $82 to the average spending. Together, these two categories are expected to account for about 60.7% of the overall impact of tariffs on winter holiday gift costs, according to Lending Tree.
Matt Schulz, LendingTree’s chief consumer finance analyst, emphasized the need for consumers to prepare for the possibility of spending more this holiday season if they wish to purchase the same quantity of items as last year. “People should expect they may have to spend a little bit more this holiday season if they want to get the same amount of stuff they did last year,” Schulz noted.
The situation regarding tariffs remains fluid. The U.S. Supreme Court is set to hear arguments on November 5 regarding the extent of President Donald Trump’s authority to impose tariffs under the 1977 International Emergency Powers Act. This comes on the heels of a recent adjustment made by Trump, who announced a halving of a fentanyl-related tariff from 20% to 10% following discussions with Chinese President Xi Jinping. Nonetheless, substantial tariffs ranging from 45% to 47% continue to apply to various Chinese imports.
Lending Tree’s analysis indicates that, without the current tariffs, consumers and retailers would have faced about $40.6 billion in additional costs through the 2024 winter holidays. Retailers would bear an estimated $12 billion of this burden, while consumers would account for the larger portion of $28.6 billion. The report underscores the significance of imported goods during this season, with expectations that consumers will spend approximately $377.7 billion on imported items, including a notable $117.5 billion on clothing and accessories, and $111.6 billion on electronics.
As prices already begin to climb, a survey by Morning Consult revealed that nearly half of respondents are noticing tariff-related increases primarily in grocery prices, with personal care products and gasoline following closely. The survey indicated that 41% of U.S. consumers have reduced their purchases due to the higher costs, while a quarter of shoppers are considering this adjustment.
In light of these developments, Schulz advises consumers to plan ahead by setting aside extra funds for holiday spending, exploring credit card sign-up bonuses, and engaging in comparison shopping to alleviate some financial pressure. “Life’s expensive in 2025, and there are steps people can take to make things a little easier on themselves,” he advised.
