More than three quarters of consumers (77%) have changed their shopping habits since initial tariffs were announced in April. Some have cut back on discretionary spending or are delaying major purchases in hopes of future discounts. Others are looking for more affordable alternatives, switching brands, or even stocking up in anticipation of price hikes.
These varied (and often contradictory) responses are making it difficult for businesses to decide on next moves and make long-term plans. From inventory forecasting to marketing messaging, granular data about customer attitudes and behaviors is necessary to develop the right business strategy.
We asked 5,500 global consumers in May and August 2025 how tariffs have impacted their wallets and shopping habits. Here’s a deeper look at how they’re spending.
How are shoppers adjusting to trade polices?
Globally, consumer responses to tariffs have been diverse. Some shoppers are spending before price increases arrive, whole others are holding back and only purchasing essentials. Here’s a breakdown of the data.
These patterns suggest that surprise tariff bills not only shake consumer trust in pricing stability but also make shoppers more hesitant to engage in spontaneous or full-price purchases. As a result, businesses that often rely on convenience-driven, immediate transactions may see reduced revenue as consumers grow wary of unpredictable costs and shift toward more deliberate, value-focused buying habits.
Regional variations to consider
Shopper behavior varies significantly across different regions, influenced by local economic conditions and trade policies. A comparison between the US and Canada reveals interesting differences:
America:
- 38% are buying only essentials
- 29% are holding back on discretionary and splurge purchases
- 14% are buying only domestic products
Canada:
- 50% are buying essentials
- 30% are holding back on discretionary and splurge purchases
- 28% are buying only domestic products
These regional differences highlight the importance of understanding local market conditions. Businesses operating in multiple regions need to tailor their strategies to meet the unique demands and preferences of each market.
Demographic insights by income and age
Age and income level significantly influence the way shoppers perceive, react to, and absorb price changes. As tariffs drive up the cost of goods, not all consumers react the same way. For example, younger shoppers may be quicker to purchase second hand goods, while older consumers might prioritize convenience or brand loyalty. Here’s a breakdown of the data:
Shopping habits by income level
- Lower-income shoppers are most likely to say that they’re buying only essential items due to tariffs (40%)
- Middle-income shoppers are most likely to say that they’re buying only essential items due to tariffs (33%)
- Higher-income shoppers are most likely to say that tariffs are not changing their shopping habits (33%)
Shopping habits by age group
- All generations say that the number one impact that tariffs have on their buying habits is that they’re only buying essentials.
- Gen X and Baby Boomers are the most likely to report that they are not changing their shopping habits due to tariffs (27% and 30%, respectively. Compared to 22% of Millennials and 18% of Gen Zers).
- Millennials and Gen Zers are the most likely to report that they are stocking up on the things they need before prices increase (26% and 29%, respectively. Compared to 17% of Gen Xers and 16% of Baby Boomers).
- Gen Z (24%) is the most likely to buy second hand goods due to tariffs (compared to 20% of Millennials, 15% of Gen X, and 9% of Baby Boomers).
- Baby Boomers (20%) are the most likely to buy goods made in their home country (compared to 16% of Gen Zers and 15% of Millennials and Gen Xers).
Understanding demographic variations is crucial for businesses looking to target their marketing efforts and ecommerce strategies effectively. Tailoring product offerings and messaging to specific age and income groups can help companies better navigate the changing consumer landscape.
Strategic implications for your business
To adapt to these changes in shopper behavior, businesses need to be flexible and responsive in their approach. Key considerations include:
- Pricing strategies: Dynamic pricing and product bundling can help immensely as tariff situations fluctuate. Start by analyzing product-level performance to identify where you have room to adjust — high-margin or inelastic items are often safe bets for moderate increases, while price-sensitive or commoditized products may require more cautious handling.
- Marketing approaches: Segment customers based on purchase frequency, lifetime value, and price sensitivity. High-value, brand-loyal customers may be more accepting of price increases, especially if they receive early access, personalized perks, or rewards that reinforce the relationship. Consider exclusive offers, targeted re-engagement journeys, and meaningful incentives to keep them close. You can also test different messaging tactics through A/B experiments to help refine your strategy with smaller customer segments before rolling it out more broadly. And don’t underestimate the power of transparency — customers appreciate knowing why prices are shifting.
- Inventory management: Businesses should closely monitor consumer trends and adjust inventory levels accordingly. Stocking up on products that are likely to be in high demand due to tariffs, like essentials, can be a smart move. Many retailers are also revisiting supplier segmentation strategies, assessing not just cost but also geopolitical exposure, lead time, and ease of substitution.
Attuned, adaptable businesses will win price-sensitive shoppers
The impact of tariffs on consumer behavior is complex and multifaceted, varying significantly across different regions and demographic groups. As trade policies continue to evolve, consumer habits are likely to shift further. Businesses that stay attuned to these changes and adapt their strategies accordingly will be better positioned to navigate the challenges and opportunities presented by the new tariff landscape.
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