81 Percent of Americans Brace for Sharp Summer Spending Drop
(MENAFN) Americans are bracing for a summer of tightened wallets as escalating tariff concerns dampen consumer confidence, threatening the traditionally robust season of travel, dining, and shopping. Multiple recent surveys reveal growing unease about the financial impact tariffs may have on everyday spending.
On Monday, U.S. President Donald Trump imposed new tariffs between 25 and 40 percent on imports from 14 countries, while also signing an executive order to maintain the suspension of "reciprocal tariffs" until August 1.
A poll of 2,011 adults released the same day found that 81 percent expressed some level of worry about how tariffs might affect their personal finances. Meanwhile, 60 percent voiced concern over tariffs’ broader economic consequences.
When asked about potential spending cuts, 48 percent indicated entertainment expenses would be their first target, closely followed by 45 percent for clothing. Notably, 52 percent admitted they have already reduced the frequency of dining out.
"We're seeing a real-time recalibration of spending habits because of both higher prices and growing uncertainty about what's coming next," the poll stated.
This shift is already reflected in retail data. According to the CNBC/National Retail Federation (NRF) Retail Monitor report published June 13, core retail sales increased a modest 0.23 percent in May compared to April. This marked a slowdown following a surge the previous month, when consumers rushed to purchase imported goods ahead of tariff enforcement.
NRF President and CEO Matthew Shay commented, "The data for May indicates that the pull-forward in consumer demand ahead of tariffs is likely dissipating."
Further illustrating caution, electronics and appliance sales fell 1.98 percent month-over-month in May. The survey also noted that 34 percent of households have postponed major purchases.
Consumer sentiment metrics echoed the prevailing uncertainty. The Conference Board’s Consumer Confidence Index dropped by 5.4 points in June, settling at 93.0, as tariffs and inflation continue to weigh heavily on Americans’ minds.
Economists warn that a sustained reduction in discretionary spending during summer could ripple through industries reliant on seasonal consumer influxes.
Some companies are already adapting. Leading movie theater chains have expanded “budget Tuesdays” to three days weekly, and national grocery chains are pushing more affordable store-brand picnic options.
Rising expenses have left retailers with little flexibility to reduce prices without hurting profit margins, according to Oxford Economics notes dated July 1.
Looking ahead, analysts suggest that easing tariff tensions or Federal Reserve rate cuts to curb inflation could stimulate consumer demand in the upcoming back-to-school period.
However, they caution that a fresh wave of tariffs—especially targeting footwear and apparel sectors with tight inventories—could deepen spending cutbacks and widen the divide between essential purchases and discretionary items.
With trade policy still in flux, consumers remain vigilant, clouding what is normally the economy’s brightest season.
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