As tariffs drive up costs of everyday items, many are being forced to rethink how they spend. A recent Savanta poll revealed that 54% of Americans believe tariffs will hurt the economy, and they’re tightening their budgets while adjusting to the new economic reality.
Here are three spending habits Americans are adjusting fast as financial anxiety rises and tariff impacts hit home.
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Name-Brand Loyalty Is Fading
More than half of Americans are ditching name-brand products they’ve been buying for years in favor of more affordable options. This shift is hitting grocery stores the hardest, where consumers are switching to cheaper store brands to save money.
The fact that 61% of Americans are abandoning name brands signals serious financial stress. When households start switching brands they’ve been loyal to for years, it’s a clear sign they’re bracing for a prolonged period of higher costs. Shoppers are no longer grabbing what’s familiar. They’re comparing unit costs and looking for every opportunity to stretch their dollars.
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Nonessentials Are Getting Cut
According to the Savanta poll, 71% of Americans have either changed or are considering changing their purchase decisions. This includes delaying or cutting back on nonessential items like clothing and home goods.
Consumers are already feeling the tariff impact, and 42% have noticed significant price increases in apparel. In response, people are buying fewer new clothes or waiting for steeper discounts to buy.
Holiday Travel Is Taking a Hit
Twenty-seven percent of Americans traveled less this Fourth of July, while 71% spent under $250 on holiday activities. Many opted to spend time with friends and family to save instead of booking flights and hotel stays. This is a sign even short-term splurges aren’t worth it for many in this economy.
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This article originally appeared on GOBankingRates.com: These 3 Spending Habits Are Disappearing Fast as Americans Brace For Tariffs
