#USA #Boston #Economic Impact #consumer behavior #Tariffs

Understanding Tariffs: Consumer Readiness and Economic Response

In a recent survey conducted by Zappi, it has been revealed that a mere 20% of American consumers feel adequately prepared to handle the rising prices that may come as a result of tariffs. This statistic, derived from a nationally representative panel of 1,000 consumers, underscores a broader unease regarding the economic implications of tariff policies and their influence on everyday living costs.

Key Findings on Consumer Concerns

The survey highlights that 55% of respondents express worry over tariffs, with only 34% believing these measures could benefit the U.S. economy. Among the many findings, a significant 70% of consumers agree that tariffs leading to increased prices affect their purchasing decisions. Notably, a staggering 63% of those who engage with trade news regularly report being concerned about tariffs, compared to just 17% among non-followers.

In terms of support for tariffs, only 20% believe they can reduce reliance on foreign manufacturing, while nearly one in five (18%) express that nothing could sway their opinion in favor of tariffs.

Adjusting to Rising Prices

As price pressures mount, consumers are already adjusting their lifestyles to cope. An impressive 91% of participants indicate they are making changes to manage rising costs. Key adjustments include:

• - Cooking at home more frequently (49%)
• - Reducing impulse purchases (45%)
• - Ordering less takeout (44%)
• - Delaying technology upgrades (22%)
• - Turning to generic brands (32%) and shopping at discount stores (31%)

These behavioral shifts reflect a growing trend where quality and price are paramount considerations in consumer decision-making, with 87% ranking quality as the most important factor, followed closely by price at 85%.

Economic Implications of Tariff Policies

When it comes to specific goods, the survey found that a price increase of just 5-10% would typically deter consumers from purchasing favored products, including snacks, fast food, and cosmetics. This sensitivity illustrates how consumer behavior is intricately linked to economic conditions facilitated by government policies.

Interestingly, while 46% of respondents claim they would prefer to buy American-made products, only 20% are prepared to pay a premium for such items. Instead, approximately 28% imply they would opt for cheaper alternatives when faced with pricing decisions.

Political Divide on Tariffs

The survey also uncovered stark differences in perceptions of tariffs along political lines. It showed that 59% of Democrats view tariffs negatively, contrasting sharply with only 20% of Republicans. Furthermore, 86% of Democrats believe tariffs inflate everyday prices, against 69% of Republicans agreeing.

This divide extends to feelings of preparedness, where only 19% of Democrats and 20% of Independents feel ready to handle price hikes due to tariffs, with 40% of Democrats expressing significant unease about potential economic fallout.

Conclusion

Conducted online in mid-April 2025, this survey sheds light on how tariffs are not only affecting economic forecasts but also compelling consumers to rethink their financial habits. With consumer sentiment fluctuating significantly based on political affiliation and awareness of economic news, businesses must navigate these trepidations as they strategize to mitigate the impacts of tariffs on their operations. For those interested in a deeper dive, Zappi provides a comprehensive report detailing consumer sentiment on tariffs and their broader implications.

About Zappi

Zappi functions as a leading consumer insights platform, utilizing AI-driven software to provide valuable insights to brands seeking to win over consumers effectively, empowering them to drive informed decisions based on real-time feedback. As a certified B-Corp committed to sustainability and equitable practices, Zappi continues to set standards in the industry while championing the voice of the consumer. To follow their work, connect with Zappi on social media platforms like LinkedIn and Instagram.