February 26, 2026
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How Are Tariffs Changing Buying Behavior?
According to a recent survey, nearly 70% of shoppers say tariffs influenced their shopping decisions, including buying more American-made products.
The survey of U.S. adults was conducted from January 10 to 14 before the U.S. Supreme Court’s ruling on February 20 — a ruling that determined President Donald Trump’s broad tariff rates on U.S. trade partners enacted under the International Emergency Economic Powers Act, or IEEPA, was illegal.
The president has vowed to continue his tariff-driven trade policy through other methods.
The survey of U.S. adults, from e-commerce marketing platform Omnisend, found 57.5% report making a conscious effort to buy more U.S.-made products over the past year, including 32% indicating they now stick to U.S.-based sellers. About a quarter (23.4%) actively avoid ordering from international sellers, although 21.1% will shop internationally if duties are shown upfront — and 36.1% still order internationally when prices are significantly lower.
The apparent shopper behavior shifts come despite Americans appearing to become more comfortable living with tariffs. Among survey respondents, 46% of Americans say they support tariffs on imported goods, up from 34% from a survey taken a year ago. More than half (54%) of Americans earning over $100,000 per year support tariffs, while 42% of those earning under $75,000 per year support them.
Still, 56% of overall respondents believe consumers ultimately bear the cost through higher prices.
“Consumers aren’t confused about tariffs — they know exactly where the cost shows up, and it’s on the receipt,” said Marty Bauer, e-commerce expert at Omnisend. “The survey showed that instead of simply shopping less to save money, people are shopping differently. They’re looking for fewer surprises, clearer pricing, and sellers they trust — and increasingly, that means choosing domestic options whenever they can.”
Tariffs Aren’t the Only Factor Driving Inflation, Price Hikes Facing Consumers
The survey comes as consumers continue to also feel the impact of price hikes in the earlier part of the decade, attributed in large part to the supply chain disruption tied to the COVID-19 pandemic, Russia’s invasion of Ukraine, and labor shortages.
U.S. annual inflation eased to 2.7% by the end of 2025, showing a gradual downward trend from as high as 7% in 2021 and 6.5% in 2022, though it remained above the Federal Reserve’s 2% goal.
In January, overall inflation unexpectedly eased to 2.4% in January as a modest increase in food prices were offset by declines in energy costs.
Many retailers and vendors found ways to reduce or absorbed the costs of tariffs in 2025, but have been signaling on recent earnings calls that price increases are inevitable given tariff pressures.
On its fourth-quarter earnings call, Walmart said that inflation for general merchandise — or the prices it charges consumers for products like electronics and appliances — rose more than 3%, up from 1.7% between July and September. Walmart CFO John David Rainey told analysts, “We’ve worked hard to mitigate grocery inflation as tariff-related costs lifted prices across many categories.”
In a note on February 23, economists at Goldman Sachs stated that while the Supreme Court ruling created a potential $180 billion opportunity for U.S. companies to seek refunds for import taxes paid during 2025 and early 2026, prices are unlikely to meaningfully fall anytime soon. Goldman Sachs estimated that tariffs added a 0.7% increase in inflation over 10 months, and levies are expected to add another 0.1% in 2026.
“We would not expect companies to lower prices in response to tariff reductions nearly as quickly as they increased them in response to tariff increases,” analysts Alec Phillips, Elsie Peng, and David Mericle wrote.
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Neil Saunders
Managing Director, GlobalData
Lisa Goller
B2B Content Strategist
Shep Hyken
Chief Amazement Officer, Shepard Presentations, LLC
Recent Discussions
Discussion Questions
How are tariffs altering consumer behavior?
How will the Supreme Court’s ruling affect U.S. retail prices in the near to medium-term?
Poll
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The full impact of tariffs has not yet been felt. Moreover, the pain that has been delivered so far has not fallen squarely on consumers as retailers have absorbed some of the higher costs. And that’s probably just as well, as where there have been price increases due to tariffs, the consumer response has been to cut the number of things they buy – which is why volume growth is so suppressed. There is also an under-appreciated downstream impact on confidence. Tariffs have created a lot of uncertainty and that shows through in depleted consumer confidence. In turn, that has increased coping behaviors like trading down, moving to value channels, and so forth. The bottom line is that tariffs are not a friend to consumers nor to retailers.
Ultimately, retail prices drop when the product is a commodity, elastic, or due to competition. Otherwise, they have no reason for a retailer to adjust. Just an opportunity to increase margins.
Price elasticity has a lot to do with sales levels and consumer buying habits, Attributing changes in Retail Price due to rising costs, whether because of tariffs on the product, tariffs on an input to the product, margin protection or greed is going to be very very challenging. That said new (higher) prices tend to be sticky, so I would not expect a direct relationship between the rate of tariff abatement (if any) and lower retail selling price.
Tariffs have rewired our consumption habits. Increased price sensitivity has led us to compare prices, search for deals and wait for sales. We’re spending less and foregoing impulse purchases. Tariffs also made thrift, private labels and local goods more appealing. Overall, we’re getting savvier and more intentional with how and if we spend.
Imposing tariffs on products we cannot produce domestically (like coffee and bananas) makes no sense and affects customer behavior, not to mention outlandish beef prices. Affordability is number one in consumers’ minds.
I would sum up the reaction succinctly: frustration; there may well be sheep obediant people who now shun Chinese-made products, but there are also many that resent being told they shouldn’t buy what they want to (and many who formerly shunned them for whatever reason – it’s called “consumer choice” – but now find themselves undecided as to what to do)
As for the price effect, since the immediate effect is simply to rearrange the tariff burden, rather than eliminate it, I think we’ll see little impact (not to mention that no one can come up with a satistactory answer as to how the hundreds of billions of $$$ were paid, yet somehow didn’t seem to raise prices noticably.)
Tariffs have created concern (and even fear) with some consumers. And most consumers are aware of how tariffs impact prices. With all the media coverage of inflation and tariffs driving up prices, consumers who might not usually be price-sensitive are becoming more price-conscious.
TARIFFS HAVE NOT CAUSED INFLATION: Quite to the contrary, for the first time in five years, inflation is under control. Under the Biden administration prices rose by 23% over four years. Under the current administration, inflation has risen by just 2.3%. Any small amount of inflation is offset by lower taxes, lower gas prices, lower interest rates, and more. Tariffs have also NOT affected the consumer economy.
Protection of Domestic Industries: By increasing the cost of imported goods, tariffs are making foreign products less attractive, directly benefiting American manufacturers. For example, tariffs on steel have led to increased investment in new, high-tech mills and created thousands of jobs in that sector. That is one of many examples.
Revenue Generation: tariffs are serving as a significant source of federal income, with estimates suggesting billions in revenue for the U.S. treasury. The deficit is shrinking every day, and tariffs are replacing the need or higher taxes.
Boosting Manufacturing and Jobs: tariffs are encouraging companies to move manufacturing back to the United States, reversing the loss of jobs to lower-cost countries. For instance, tariffs on washing machines led companies like Samsung and LG to open U.S. plants.
Negotiation Leverage: Tariffs are causing other nations to change their trade practices, address trade deficits, or negotiate better deals. For many years, the U.S. was at a major disadvantage with having to pay tariffs but not receive them. Reciprocal tariffs make common sense.
Supply Chain Resilience: Tariffs are reducing reliance on foreign nations for critical goods, enhancing national economic security.
Tariffs DON”T cause inflation, but they DO increase the cost of imported goods. Interesting.
Tariffs are a significant source of federal income. How about when the collection of those have been ruled to be illegal and they have to be repaid?
The deficit is NOT shrinking every day. It’s growing at a slightly slower rate TY vs LY. The CBO projection for the full-year FY 2026 deficit is $1.9 trilliion. Real time trackers project a deficit of $2.2 trillion. Trillion, with a “T”. That’s not shrinking.
Billions of $$$ in tariffs, even legal tariffs, will NOT replace TRILLIONS in taxes.
Yes, tariffs are causing other nations to change their trade practices. They are forming trade alliances and specifically excluding the USA. Nice.
Hmmm? “ The deficit is shrinking every day, and tariffs are replacing the need for higher taxes. “Not exactly!
- Over the past year, the rate of increase averaged $6.43 billion per day, $267.76 million per hour, $4.46 million per minute, or $74,378.88 per second.
- The increase in gross national debt over the past year amounts to $6,894.56 per person or $17,401.98 per household.
- Total gross national debt amounts to $113,354 per person or $286,108 per household.
- Assuming the average daily rate of growth over the past three years continues, the U.S. will reach $39 trillion by approximately April 12, 2026.
While the headlines focus on the macro-economic impact of tariffs, the real strategic challenge lies in how customers think about value. Even if some support tariffs in principle, at checkout they are more cautious. They compare prices, look for deals, and shift to brands they trust.
Customers are not stopping spending. They are becoming more deliberate. They want clear pricing and fewer surprises. If costs feel unpredictable, they quickly trade down or switch channels.
Retailers should focus on simple, transparent pricing and strong value communication. Tight inventory control and disciplined margin management will matter more than reacting to every policy change. In this environment, consistency and clarity will build more trust than short-term price moves.
Tariffs are already reshaping consumer behavior in subtle yet meaningful ways. At a fundamental level, tariffs function as a tax on imports, and that cost largely flows through to U.S. consumers and businesses rather than foreign producers. The result is not a collapse in spending, but a shift in behavior—greater price sensitivity, more deal-seeking, increased brand switching, and in some cases even “pull-forward” buying or stockpiling ahead of expected price increases. In other words, tariffs are changing how consumers spend, far more than whether they spend, reinforcing a more calculated and value-driven shopper mindset.
On the pricing front, the Supreme Court’s ruling is unlikely to translate into immediate relief for consumers. While the decision may reduce or eliminate certain tariffs and ease some inflationary pressure, most retailers have already reset prices to higher costs—and they tend to raise prices quickly but lower them slowly, if at all. There is also continued policy uncertainty, with new or alternative tariffs being introduced or considered, which further limits the likelihood of rapid price reductions. Even where tariffs are rolled back, the benefits may show up more in slowing future price increases rather than reversing existing ones.
From a practical standpoint, price decreases will occur only when competitive pressure or weak sales demand them. Many brands and retailers have already absorbed a portion of tariff-related costs to remain competitive, which means any giveback to consumers will likely be muted. The net effect is that tariffs have reset the pricing baseline—consumers are adapting to a higher-cost environment, and even with legal or policy changes, that environment is unlikely to unwind quickly without sustained market pressure.
Tariffs are neon signs consumers are relating to the “affordability” issue. According to a recent Washington Post-ABC News-Ipsos poll, healthcare, new cars & new homes feel unaffordable to most Americans. I think the heightened discussion & reported negative impact on consumers has changed behaviors. While the biggest impact is on high ticket items, groceries & dining out have not been spared. Until repealed or reduced the effects will still continue.
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The full impact of tariffs has not yet been felt. Moreover, the pain that has been delivered so far has not fallen squarely on consumers as retailers have absorbed some of the higher costs. And that’s probably just as well, as where there have been price increases due to tariffs, the consumer response has been to cut the number of things they buy – which is why volume growth is so suppressed. There is also an under-appreciated downstream impact on confidence. Tariffs have created a lot of uncertainty and that shows through in depleted consumer confidence. In turn, that has increased coping behaviors like trading down, moving to value channels, and so forth. The bottom line is that tariffs are not a friend to consumers nor to retailers.
Ultimately, retail prices drop when the product is a commodity, elastic, or due to competition. Otherwise, they have no reason for a retailer to adjust. Just an opportunity to increase margins.
Price elasticity has a lot to do with sales levels and consumer buying habits, Attributing changes in Retail Price due to rising costs, whether because of tariffs on the product, tariffs on an input to the product, margin protection or greed is going to be very very challenging. That said new (higher) prices tend to be sticky, so I would not expect a direct relationship between the rate of tariff abatement (if any) and lower retail selling price.
Tariffs have rewired our consumption habits. Increased price sensitivity has led us to compare prices, search for deals and wait for sales. We’re spending less and foregoing impulse purchases. Tariffs also made thrift, private labels and local goods more appealing. Overall, we’re getting savvier and more intentional with how and if we spend.
Imposing tariffs on products we cannot produce domestically (like coffee and bananas) makes no sense and affects customer behavior, not to mention outlandish beef prices. Affordability is number one in consumers’ minds.
I would sum up the reaction succinctly: frustration; there may well be
sheepobediantpeople who now shun Chinese-made products, but there are also many that resent being told they shouldn’t buy what they want to (and many who formerly shunned them for whatever reason – it’s called “consumer choice” – but now find themselves undecided as to what to do)As for the price effect, since the immediate effect is simply to rearrange the tariff burden, rather than eliminate it, I think we’ll see little impact (not to mention that no one can come up with a satistactory answer as to how the hundreds of billions of $$$ were paid, yet somehow didn’t seem to raise prices noticably.)
Tariffs have created concern (and even fear) with some consumers. And most consumers are aware of how tariffs impact prices. With all the media coverage of inflation and tariffs driving up prices, consumers who might not usually be price-sensitive are becoming more price-conscious.
TARIFFS HAVE NOT CAUSED INFLATION: Quite to the contrary, for the first time in five years, inflation is under control. Under the Biden administration prices rose by 23% over four years. Under the current administration, inflation has risen by just 2.3%. Any small amount of inflation is offset by lower taxes, lower gas prices, lower interest rates, and more. Tariffs have also NOT affected the consumer economy.
Protection of Domestic Industries: By increasing the cost of imported goods, tariffs are making foreign products less attractive, directly benefiting American manufacturers. For example, tariffs on steel have led to increased investment in new, high-tech mills and created thousands of jobs in that sector. That is one of many examples.
Revenue Generation: tariffs are serving as a significant source of federal income, with estimates suggesting billions in revenue for the U.S. treasury. The deficit is shrinking every day, and tariffs are replacing the need or higher taxes.
Boosting Manufacturing and Jobs: tariffs are encouraging companies to move manufacturing back to the United States, reversing the loss of jobs to lower-cost countries. For instance, tariffs on washing machines led companies like Samsung and LG to open U.S. plants.
Negotiation Leverage: Tariffs are causing other nations to change their trade practices, address trade deficits, or negotiate better deals. For many years, the U.S. was at a major disadvantage with having to pay tariffs but not receive them. Reciprocal tariffs make common sense.
Supply Chain Resilience: Tariffs are reducing reliance on foreign nations for critical goods, enhancing national economic security.
Tariffs DON”T cause inflation, but they DO increase the cost of imported goods. Interesting.
Tariffs are a significant source of federal income. How about when the collection of those have been ruled to be illegal and they have to be repaid?
The deficit is NOT shrinking every day. It’s growing at a slightly slower rate TY vs LY. The CBO projection for the full-year FY 2026 deficit is $1.9 trilliion. Real time trackers project a deficit of $2.2 trillion. Trillion, with a “T”. That’s not shrinking.
Billions of $$$ in tariffs, even legal tariffs, will NOT replace TRILLIONS in taxes.
Yes, tariffs are causing other nations to change their trade practices. They are forming trade alliances and specifically excluding the USA. Nice.
Hmmm? “ The deficit is shrinking every day, and tariffs are replacing the need for higher taxes. “Not exactly!
While the headlines focus on the macro-economic impact of tariffs, the real strategic challenge lies in how customers think about value. Even if some support tariffs in principle, at checkout they are more cautious. They compare prices, look for deals, and shift to brands they trust.
Customers are not stopping spending. They are becoming more deliberate. They want clear pricing and fewer surprises. If costs feel unpredictable, they quickly trade down or switch channels.
Retailers should focus on simple, transparent pricing and strong value communication. Tight inventory control and disciplined margin management will matter more than reacting to every policy change. In this environment, consistency and clarity will build more trust than short-term price moves.
Tariffs are already reshaping consumer behavior in subtle yet meaningful ways. At a fundamental level, tariffs function as a tax on imports, and that cost largely flows through to U.S. consumers and businesses rather than foreign producers. The result is not a collapse in spending, but a shift in behavior—greater price sensitivity, more deal-seeking, increased brand switching, and in some cases even “pull-forward” buying or stockpiling ahead of expected price increases. In other words, tariffs are changing how consumers spend, far more than whether they spend, reinforcing a more calculated and value-driven shopper mindset.
On the pricing front, the Supreme Court’s ruling is unlikely to translate into immediate relief for consumers. While the decision may reduce or eliminate certain tariffs and ease some inflationary pressure, most retailers have already reset prices to higher costs—and they tend to raise prices quickly but lower them slowly, if at all. There is also continued policy uncertainty, with new or alternative tariffs being introduced or considered, which further limits the likelihood of rapid price reductions. Even where tariffs are rolled back, the benefits may show up more in slowing future price increases rather than reversing existing ones.
From a practical standpoint, price decreases will occur only when competitive pressure or weak sales demand them. Many brands and retailers have already absorbed a portion of tariff-related costs to remain competitive, which means any giveback to consumers will likely be muted. The net effect is that tariffs have reset the pricing baseline—consumers are adapting to a higher-cost environment, and even with legal or policy changes, that environment is unlikely to unwind quickly without sustained market pressure.
Tariffs are neon signs consumers are relating to the “affordability” issue. According to a recent Washington Post-ABC News-Ipsos poll, healthcare, new cars & new homes feel unaffordable to most Americans. I think the heightened discussion & reported negative impact on consumers has changed behaviors. While the biggest impact is on high ticket items, groceries & dining out have not been spared. Until repealed or reduced the effects will still continue.