Americans Brace for Record-High Holiday Prices Amid Economic Strain
As the holiday season approaches, a recent report from Clever Real Estate has highlighted that 72% of Americans believe that tariffs will drive prices to unprecedented levels in 2025. With many shoppers feeling the weight of inflation and economic uncertainty, over half (56%) of the population is trimming down their festive expenditures, redirecting funds to cover essential living costs instead.
This year, consumers plan to spend an average of $550 on holiday gifts, a decrease from $600 in 2024. Primary factors influencing this cutback include escalating inflation (55%), tariffs (38%), and the loss of SNAP benefits (15%). The rising costs have left many fearing the debt trap, with about 28% expressing worries of going into debt due to their holiday expenses. Alarmingly, 14% are already planning to utilize credit cards without the means to settle the balances.
Additionally, the emotional toll of this financial landscape cannot be overlooked; two-thirds of those surveyed (68%) report that the holidays have evolved into a source of significant financial stress rather than joy. This trend is compounded by the belief that retailers are transferring the full brunt of tariff costs onto consumers, a fact that 71% of respondents support. Anticipations of product shortages are also prevalent, with 56% fearing they will face difficulties finding desired gifts.
The findings further reveal that a mere 15% of consumers are inclined to opt for more expensive American-made products if tariffs inflate the costs of imported goods, contradicting the Trump administration's assertions that tariffs would bolster domestic demand. In contrast, 38% of Americans would feel relief if tariffs were reduced, while 69% wish for lower grocery prices to ease their burdens.
Support for SNAP benefits remains robust, with 60% of the respondents advocating for enhanced assistance during the holiday season. Meanwhile, political sentiments are influencing shopping behaviors; a quarter (25%) of Americans refuse to patronize particular retailers due to their political affiliations, and among the boycotters, 56% feel uneasy about accepting gifts from such stores. Engaging in pragmatic choices, 59% are willing to shop at retailers with conflicting political views to save money, with 43% of boycotters admitting the same.
The overarching narrative depicts a nation grappling with economic decline: 72% of Americans perceive the economy as worsening as the holidays draw near. This feeling of guilt over spending on gifts while others struggle to meet basic needs is echoed by 55% of respondents.
Overall, the 2025 holiday season stands to be exceptionally challenging for consumers, with increasing prices and shrinking budgets shaping how Americans plan to celebrate. For more details on holiday spending outlooks, please visit the full report here.
Clever Real Estate has reached stellar milestones since its inception in 2017, now reaching over 10 million readers annually and matching more than 187,000 customers with realtors across its extensive network of 18,000 agents. Through their innovative services, consumers have saved over $220 million on commission fees, highlighting their enduring impact in the real estate market.
This year, consumers plan to spend an average of $550 on holiday gifts, a decrease from $600 in 2024. Primary factors influencing this cutback include escalating inflation (55%), tariffs (38%), and the loss of SNAP benefits (15%). The rising costs have left many fearing the debt trap, with about 28% expressing worries of going into debt due to their holiday expenses. Alarmingly, 14% are already planning to utilize credit cards without the means to settle the balances.
Additionally, the emotional toll of this financial landscape cannot be overlooked; two-thirds of those surveyed (68%) report that the holidays have evolved into a source of significant financial stress rather than joy. This trend is compounded by the belief that retailers are transferring the full brunt of tariff costs onto consumers, a fact that 71% of respondents support. Anticipations of product shortages are also prevalent, with 56% fearing they will face difficulties finding desired gifts.
The findings further reveal that a mere 15% of consumers are inclined to opt for more expensive American-made products if tariffs inflate the costs of imported goods, contradicting the Trump administration's assertions that tariffs would bolster domestic demand. In contrast, 38% of Americans would feel relief if tariffs were reduced, while 69% wish for lower grocery prices to ease their burdens.
Support for SNAP benefits remains robust, with 60% of the respondents advocating for enhanced assistance during the holiday season. Meanwhile, political sentiments are influencing shopping behaviors; a quarter (25%) of Americans refuse to patronize particular retailers due to their political affiliations, and among the boycotters, 56% feel uneasy about accepting gifts from such stores. Engaging in pragmatic choices, 59% are willing to shop at retailers with conflicting political views to save money, with 43% of boycotters admitting the same.
The overarching narrative depicts a nation grappling with economic decline: 72% of Americans perceive the economy as worsening as the holidays draw near. This feeling of guilt over spending on gifts while others struggle to meet basic needs is echoed by 55% of respondents.
Overall, the 2025 holiday season stands to be exceptionally challenging for consumers, with increasing prices and shrinking budgets shaping how Americans plan to celebrate. For more details on holiday spending outlooks, please visit the full report here.
Clever Real Estate has reached stellar milestones since its inception in 2017, now reaching over 10 million readers annually and matching more than 187,000 customers with realtors across its extensive network of 18,000 agents. Through their innovative services, consumers have saved over $220 million on commission fees, highlighting their enduring impact in the real estate market.
Topics Consumer Products & Retail）
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