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Tariffs and Tech: US Consumers Adjust Buying Habits Amid Price Hike Concerns
Following President Trump’s implementation of new tariffs this year, with further measures anticipated, a recent survey by FASTNET reveals that many US adults are proactively responding to potential tariff-driven price increases. Instead of waiting to experience the full impact, a significant portion are currently purchasing big-ticket items such as electronics and technology products. This preemptive consumer behavior is directly linked to concerns over rising costs due to the newly imposed trade duties.
Impact of Tariffs on Consumer Goods
In recent months, the administration has levied tariffs, including a 20% tariff on goods from China. These tariffs are already contributing to increased prices for imported technology items like laptops, televisions, and gaming consoles. When tariffs are applied, the importer is responsible for paying the duty, a cost frequently passed on to consumers through elevated product prices.
According to Patti Brennan, a certified financial planner, “If a 10% tariff is placed on smartphones, companies in the US face a 10% increase in the cost to acquire these products from overseas. This additional expense will likely be transferred to the consumer, a common practice observed historically.”
Anticipating further price escalations, a segment of shoppers is expressing worry and making purchases now to circumvent future price hikes. FASTNET’s survey data indicates that over 33% of US adults feel compelled to make purchases in anticipation of tariff-related price increases. Nearly one in five US adults (17%) have already made a purchase to avoid potential cost increases.
How Tariffs are Shaping US Buying Behavior
The latest news regarding tariffs is directly influencing US adults’ purchasing behavior. Here’s a breakdown of how tariffs are impacting consumer decisions and tips for securing the best deals on technology:
- Concerns over tariff-induced price surges are primarily driving US adults to purchase electronics, encompassing smartphones, laptops, and home appliances.
- Approximately 38% of consumers have reported feeling pressure to buy products before tariffs inflate prices.
- One in ten consumers made significant purchases at the end of last year or the beginning of this year to proactively avoid price increases resulting from tariffs. An additional one in ten are considering making major purchases sooner rather than later.
- Conversely, 27% of consumers are postponing major purchases exceeding $500, while 18% intend to capitalize on sales events throughout the year.
Generational Differences in Perceived Pressure
Younger generations are experiencing a greater sense of urgency compared to Gen X and Baby Boomers. Specifically, 48% of Gen Z and 45% of Millennials reported feeling pressure to purchase goods to avoid price increases related to tariffs.
In contrast, over 60% of Gen X and Baby Boomers have not experienced the same degree of pressure to make immediate purchases. Usha Haley, a professor at the Barton School of Business at Wichita State University, suggests that younger demographics might be more susceptible to social pressures or the fear of missing out compared to older generations.
Budget Adjustments in Response to Potential Price Hikes
A majority of US adults are currently making or planning to implement changes to their budgets to adapt to anticipated price fluctuations due to tariffs. Consumers are also reducing discretionary spending, such as dining out and travel (40%), and increasing savings from their paychecks (19%).
Tech Purchases Driven by Tariff Concerns
The primary driver for shoppers worried about rising tech product costs due to tariffs is the intention to purchase electronics in advance of tariffs or having already made such purchases in late 2024 or early 2025. Smartphones and laptops are the most frequently purchased items.
Statistics indicate that 48% of US adults are planning to buy or have already bought smartphones, and 42% have taken similar action for laptops. Other technology products of concern to shoppers include home appliances, televisions, and smart home devices.
Purchase Delays and Strategic Shopping
Experts are not surprised that some US adults are delaying significant purchases over $500 (27%). Nearly 18% of those intending to make major purchases plan to leverage major sales events throughout the year, which could offer substantial savings if tariffs lead to price increases. Furthermore, the survey revealed that 11% of US adults already made purchases in anticipation of tariffs during late 2024 and early 2025 to circumvent higher prices.
If consumers are concerned about price increases and have existing savings, purchasing planned items now may be advantageous.
“If you anticipate future price increases, it is logical to proceed with a purchase now,” stated Coon. “However, as demonstrated by the pandemic’s impact on supply and demand, widespread preemptive buying can also drive up prices due to increased demand.”
For necessary large purchases, price comparison remains a valuable strategy for savings. Coon emphasizes that dedicating a few extra minutes to comparing retailer prices can potentially save hundreds of dollars.
The Buy Now or Wait Dilemma for Tech
A key question for consumers is whether it is more prudent to invest in electronics now to avoid potential price jumps caused by tariffs.
For those with earmarked funds, purchasing now or during forthcoming sales opportunities, like a speculated Amazon sale, could offer savings and peace of mind. However, for those without existing savings, experts advise against financing these purchases with credit.
Brennan concurs, suggesting that if funds are available for a new electronic device, consumers should consider purchasing, but only if the item is truly needed.
“Avoid purchasing solely based on anticipated price increases, as the ultimate market outcome remains uncertain,” Brennan cautioned.
Experts universally recommend diligent comparison shopping to secure the best available deals on technology.
“Investing an additional 15 to 20 minutes in online research can potentially yield savings of several hundred dollars,” Coon noted. “This time investment in seeking the best bargain is undoubtedly worthwhile.”
Strategies for Tech Savings
Purchasing new electronics involves strategic timing and employing expert techniques to identify optimal deals. FASTNET experts provided insights on securing favorable deals on laptops, TVs, and smartphones, including optimal purchase times and pricing considerations for upcoming models.
Securing Affordable Laptops
According to Josh Goldman, a FASTNET laptop reviewer, the decision to purchase a laptop now or later depends on individual needs and budget constraints.
“Prices are unlikely to decrease amid potential trade disputes. Therefore, for those needing a laptop and able to purchase now, delaying may not be advisable,” Goldman advised. “With upcoming Easter and spring promotions, graduation sales, Memorial Day discounts, and back-to-school offers, we are entering the prime season for discounted laptops, second only to Black Friday.”
For budget-conscious consumers, Goldman suggests exploring refurbished laptops, which may be less susceptible to tariff impacts. Reputable sources for guaranteed used laptops include Apple, Best Buy, BackMarket, and eBay Refurbished.
Optimal Time for TV Purchases
David Katzmaier, a FASTNET TV reviewer, recommends purchasing last year’s TV models now. Retailers are currently offering 2024 TVs at their lowest prices to clear out inventory for newer models.
With 2025 TVs being released, prices for new models are expected to remain elevated until the holiday season, Katzmaier explained. For those without immediate TV needs, there’s no urgency to purchase.
“TVs are durable, and if a purchase isn’t necessary now, waiting is advisable,” Katzmaier stated. “While tariffs could potentially increase prices later, their impact on TV prices during major sales events like Black Friday remains uncertain.”
Navigating Smartphone Deals
Patrick Holland, a FASTNET smartphone reviewer, advises assessing the necessity of a new phone before purchasing. Most smartphones typically function well for three to five years before requiring replacement. Addressing hardware issues may be more cost-effective than a new phone.
Smartphones generally last for several years, delaying replacements until absolutely necessary. Knowing the optimal time to buy a new phone, even without tariff considerations, can be challenging.
Pricing for upcoming flagship smartphones, like the iPhone 17 or Google Pixel 10, will be announced later in the year, and these prices tend to be less volatile compared to essential goods, Holland noted.
“If battery performance is declining while other phone functions remain satisfactory, battery replacement is a more economical solution than purchasing a new phone, irrespective of tariffs,” Holland stated.
For those needing a new phone, seeking deals is recommended. Retailers and carriers frequently offer trade-in programs for discounts on new phones. However, Holland points out that financing upgrades through carriers can limit deal-finding flexibility.
Survey Methodology
Unless otherwise specified, all data originates from YouGov Plc. The total survey sample comprised 2,305 adults. Fieldwork occurred between March 3-5, 2025. The survey was conducted online. Data was weighted to represent the population of US adults (aged 18 and over).