A person walks down a street with shopping bags in New York City on Nov. 29, 2024.
David Dee Delgado | Getty Images
American consumer wallets will be billions of dollars lighter this holiday season because of President Donald Trump’s tariffs, according to LendingTree.
Sunday marked six months since Trump announced his broad “liberation day” tariffs.
Prices for select food and consumer goods rose in the wake of that announcement.
And consumers are set to see more of the impact from those tariffs as holiday items that have been stored in warehouses for months are finally hitting store shelves.
LendingTree, which operates on an online lending marketplace, used 2024 winter holiday spending data as a reference point for its analysis of the upcoming season.
The company estimated that the new tariffs will increase total holiday costs for consumers and retailers by a total of $40.6 billion.
Consumers will be on the hook for most of the extra costs from tariffs, an estimated $28.6 billion.
That translates to around $132 per shopper.
Retailers are expected to eat the remaining $12 billion in extra costs from the tariffs.
“For most Americans, spending an extra $132 at the holidays is significant,” said Matt Schulz, LendingTree’s chief consumer finance analyst.
“While it may not be earth-shattering, it can have a real impact on many families. It could prompt people to cut back on gift-giving this year or lead to them taking on extra debt,” Schulz said.
“That’s a choice no one wants to have to make.”
Retail analysts have told CNBC that retailers expect consumers to buy fewer items this holiday season due to higher costs from tariffs.
Schultz agreed, calling it an “unfortunate reality” that many consumers will have to face.
“That might mean giving fewer of those items as gifts, or it could mean having to suck up the higher costs to give your loved ones what they want,” Schulz said.
“I doubt that we’ll see a huge drop-off in the amount of electronics and clothes that are gifted this year, simply because they’re what so many people want,” he said. “However, for some, higher prices may leave them no choice.”
LendingTree estimated that buyers of holiday electronics will see the biggest hit from the tariffs, with an average extra cost of $186 per shopper.
Clothing or accessories have the next highest added cost, at $82 per shopper, the company said.
Buyers of personal care items, beauty products, and toys will pay $14 more per shopper, and food and candy will cost $12 more per buyer as a result of the tariffs.