Importance Score: 65 / 100 🔴
US Consumers Respond to Looming Tariffs on Imported Goods
Anticipated tariffs from the Trump administration are poised to take effect next week, adding to previously implemented import taxes this year. These tariffs, designed to influence international trade, are already impacting the prices of consumer electronics and prompting shifts in purchasing behavior. Consumers are increasingly aware of the potential for price increases on goods, particularly in the tech sector, leading to adjustments in their spending habits.
Impact of Current and Upcoming Tariffs
Recent months have seen the implementation of significant tariffs. A 20% tariff on Chinese imports has already resulted in elevated prices for popular electronics such as laptops, televisions, and gaming consoles. Furthermore, a 25% tariff on imported vehicles and automotive parts is now in effect. An across-the-board 10% tariff on all imports is scheduled to begin on April 5.
Retaliatory tariffs from several nations are also expected to be implemented on April 9. These reciprocal measures include tariffs of 34% from China, 20% from the European Union, 26% from India, 24% from Japan, and 10% from the United Kingdom. President Trump has stated these tariffs are a countermeasure to existing tariffs imposed by these countries on goods from the United States.
Consumer Behavior in the Face of Tariffs
Tariffs are levied on importers, who often offset this expense by raising prices for consumers. Many American consumers are proactively reacting to anticipated price increases. A recent study by FASTNET reveals a trend of purchasing major items, particularly electronics, ahead of tariff implementation.
“A 10% tariff on smartphones means companies in the US will incur a 10% increase in the cost of importing these products,” explains Patti Brennan, a certified financial planner. “This additional cost is likely to be passed down to consumers, a pattern observed historically with similar trade measures.”
Concerns over rising prices are influencing consumer behavior. The FASTNET survey indicates that over 33% of US adults are feeling pressure to make purchases now, preempting tariff-related price hikes. Approximately 17% of US adults have already made purchases to avoid potential cost increases.
Key Findings on Tariff Impact and Consumer Purchasing Trends
- US consumers express heightened urgency to purchase electronics, including smartphones, laptops, and home appliances, fearing tariff-driven price inflation.
- 38% of consumers report feeling pressured to buy products before tariffs lead to price increases.
- One in ten consumers made significant purchases in late 2024 or early 2025 to circumvent tariff-related price jumps, with another one in ten indicating they are likely to expedite planned major purchases.
- 27% of consumers are postponing major purchases exceeding $500, while 18% intend to capitalize on sales events this year.
Generational Differences in Perceived Purchase Pressure
Younger demographics are exhibiting a greater sense of urgency to buy now compared to older generations. Among Gen Z and millennials, 48% and 45% respectively reported feeling pressured to make purchases to avoid tariff impacts.
In contrast, over 60% of Gen X and baby boomers do not share the same level of purchase pressure. Usha Haley, a professor at Wichita State University’s Barton School of Business, suggests that younger generations may be more susceptible to social pressures and the fear of missing out compared to their older counterparts.
Budgetary Adjustments in Anticipation of Price Hikes
A majority of US adults are making or planning to make adjustments to their budgets to accommodate potential price increases stemming from tariffs. Consumers are reducing discretionary spending, such as dining out and travel (40%), and increasing savings from each paycheck (19%).
Proactive Tech Purchases Driven by Tariff Concerns
Consumers worried about tariff-induced price increases on technology are largely opting to purchase electronics either in advance of tariff implementation or have already made such purchases in late 2024 or early 2025. Smartphones and laptops are the most frequently purchased items in this category.
Statistics show that 48% of US adults intend to buy or have already bought smartphones, and 42% have taken similar action regarding laptops. Other tech items of concern to shoppers include home appliances, televisions, and smart home devices.
Purchase Delays and Strategic Shopping Among Consumers
Experts are not surprised that a segment of US consumers are delaying major purchases over $500 (27%). Nearly one in five (18%) planning significant purchases intend to leverage major sales events throughout the year, potentially mitigating price increases caused by tariffs. Additionally, 11% of US adults surveyed reported making purchases in late 2024 and early 2025 to avoid higher prices due to tariffs.
For consumers with existing savings earmarked for purchases, acting now might be advisable to avoid potential price increases. “If future price increases are anticipated, it makes sense to purchase sooner,” noted Coon. “However, as seen during the pandemic with supply chain disruptions, widespread preemptive buying can itself drive up prices due to demand surges.”
For necessary large purchases, consumers are advised to compare prices to secure the best deals. Investing time in comparing retailer offers can result in significant savings.
Timing Tech Purchases: Buy Now or Wait?
A key question for consumers is whether to purchase electronics now to preemptively avoid tariff-related price increases.
Consumers with allocated funds for tech purchases might benefit from shopping now or during forthcoming sales events, like a potential Amazon sale, to secure savings and peace of mind. However, financial experts advise against financing these purchases if funds are not readily available.
Brennan concurs, suggesting that consumers with the financial means to purchase needed electronics should proceed, but only for genuinely necessary items.
“Avoid purchasing solely in anticipation of price increases, as the ultimate impact of tariffs remains uncertain,” Brennan cautioned.
Experts emphasize the importance of comparison shopping to find the most advantageous deals on technology.
“Spending an extra 15 to 20 minutes searching online could result in savings of hundreds of dollars,” Coon stated. “This time investment is definitely worthwhile for bargain hunters.”
Strategies for Saving on Electronics: Laptops, TVs, and Phones
Effective electronics shopping involves strategic timing and leveraging expert insights to identify optimal deals. FASTNET experts offer guidance on maximizing savings on laptops, TVs, and smartphones, advising on opportune purchase times and pricing considerations for upcoming models this year.
Securing Affordable Laptops
The decision to buy a laptop now or later hinges on individual needs and budget constraints, according to Josh Goldman, a FASTNET laptop reviewer.
“Laptop prices are unlikely to decrease amidst potential trade escalations. Consumers needing a laptop who can afford to buy now should not delay,” Goldman advises. “Seasonal sales events like Easter, spring sales, Father’s Day, Memorial Day, and back-to-school promotions present prime opportunities for discounted laptop purchases outside of Black Friday.”
For budget-conscious consumers needing a laptop, Goldman recommends exploring refurbished options, which are less likely to be affected by tariffs. Retailers like Apple, Best Buy, BackMarket, and eBay Refurbished offer deals on warrantied pre-owned laptops.
Optimal Timing for TV Purchases
David Katzmaier, FASTNET senior editorial director and TV reviewer, suggests purchasing last year’s TV models now for those seeking new televisions. 2024 models are currently priced at their lowest as retailers clear inventory for newer models.
With 2025 TVs entering the market, prices for these new models are expected to remain elevated until the holiday season, Katzmaier notes. Consumers without immediate TV needs are advised to wait until a purchase becomes necessary.
“TVs have a long lifespan. If a purchase isn’t urgent, waiting is advisable,” Katzmaier states. “While tariffs could increase prices later in the year, their impact on TV prices during major sales periods like Black Friday and the year-end holidays remains unclear.”
Navigating Smartphone Deals
Patrick Holland, a FASTNET smartphone reviewer, recommends assessing the necessity of a new phone before making a purchase. Most smartphones remain functional for three to five years before requiring replacement. Addressing specific hardware issues can be more cost-effective than replacing the entire device.
Smartphones typically have a lifespan of several years, and replacements are often made only when necessary. Determining the optimal time for a new phone purchase can be challenging, even without considering tariffs.
Pricing for upcoming flagship smartphones like the iPhone 17 or Google Pixel 10 will be announced later in the year, and these prices are less prone to volatility compared to essential goods like groceries, Holland explains.
“If battery life is waning but other phone functions are adequate, replacing the battery is more economical than a new phone, tariff or no tariff,” Holland reiterates.
Consumers needing a new phone should seek out deals. Some retailers and carriers offer trade-in programs for discounts on new phones. However, Holland points out that carrier financing for smartphone upgrades may complicate the process of finding the best deals.
Survey Methodology
Unless indicated otherwise, all data originates from YouGov Plc. The total survey sample size was 2,305 adults. Fieldwork was conducted from March 3-5, 2025. The survey was administered online. Data were weighted to represent all US adults aged 18 and over.