How Trump’s Trade War With China Is Looming Over Shoppers This Holiday Season
President Donald Trump’s trade war with China is causing some consumers to pause before stocking up on holiday gifts this season.
According to a survey by NerdWallet, 93% of Americans plan to buy gifts this holiday season, but 73% say tariffs on Chinese goods will affect the way they shop.
Items that have been affected by the tit-for-tat tariffs between the U.S. and China vary—from smart watches and bike helmets to furniture and cosmetics. Prices can tick up during a trade war because U.S. tariffs on foreign goods mean U.S. companies that rely on imports must pay more for them, and those companies may, in turn, pass the additional cost on to customers.
While the impact of tariffs are not always felt immediately, some items, such as home appliances, have already gone up in price amid the U.S.-China spat, according to NerdWallet.
Of the 73% who said the trade war will affect their upcoming purchases, 44% said they planned to more closely compare prices on products, 22% said they would avoid buying products made in China entirely, 19% said they would avoid buying products affected by tariffs, and 16% said they will buy fewer gifts than usual.
While the survey findings are noteworthy, it’s important to remember that its sample size was relatively small: 2,004 adults ages 18 and older.
Should the trade war prove to have a measurable impact on consumer habits, Trump could be harder pressed to deem the war a success in the weeks and months to come.