The US economy has undergone a considerable shift this year compared to previous years. The introduction of tariffs has not only impacted international trade but also the domestic economy on a large and small scale. Several businesses have already admitted they will pass the tariff costs directly on to consumers. Price increases are affecting clothing, footwear, automobiles, food, and luxury goods. The latest data from Black Friday, the biggest shopping day of the year, shows that while Americans spent more in 2025, they went home with less, as prices continue to rise due to President Trump’s turbulent economic agenda.
Consumers have been relatively able to avoid price increases in clothing, groceries, and technology products, but it seems the times will change
Regarding the holiday spirit, the University of Michigan Consumer Survey reveals that consumer sentiment is 28% lower than a year ago, while perceptions of current economic conditions are almost 33% lower, both nearing historic lows. For now, consumers have been relatively able to avoid price increases in clothing, groceries, and technology products, but it seems the time will come when people will begin to feel the effects of these price hikes.
Nike and Adidas, which anticipate multimillion-dollar price hikes due to tariffs on their Asian factories, as well as Macy’s
Some retailers have already announced price increases. These include Nike and Adidas, which anticipate multimillion-dollar price hikes due to tariffs on their Asian factories; Macy’s, Columbia Sportswear, and Hermès have also confirmed price increases on clothing and accessories; Ferrari, Ford, and Volkswagen have announced adjustments to imported cars that could raise prices by between $4,000 and $12,000. With Trump’s reckless tariffs making it difficult to access everyday essentials, the added holiday expenses are leading Americans to cut back on their gift lists instead of decorating their Christmas trees. Other retailers that have also announced price increases include Conagra, Target, and Walmart, which warned of hikes in basic food items and canned goods; as well as Best Buy, Home Depot, Nikon, Canon, Leica, and Swatch, which have already implemented price increases on technology, household goods, and watches.
The recommendation is to make essential purchases early and consider domestically produced substitutes
Given the current situation, experts suggest caution in the short term with certain products particularly sensitive to tariffs. Recent data from Clever Real Estate reveals that 72% of Americans expect Trump’s tariffs to make 2025 the most expensive holiday season to date, and more than half (56%) are cutting back on gifts just to pay the bills. The recommendation is to make essential purchases early and consider domestically produced substitutes, which are less exposed to the trade war. In fact, two-thirds of Americans (68%) say the holidays now cause them more financial stress than joy.
These tariffs triggered more than 2,000 job cuts in November alone
Therefore, and considering the points mentioned above, experts advise against buying certain types of items, such as clothing and footwear, as these will be among the first to experience price increases, which will quickly be reflected in store displays. The job market is also showing warning signs. Challenger, Gray & Christmas reports 1.17 million job cuts announced so far this year, a 54% increase over last year and the highest figure since the 2020 pandemic. In fact, even imported cars are among the sectors that experts advise against buying right now. Tariffs on automobiles significantly increase costs, making both luxury and family models more expensive. These tariffs triggered more than 2,000 job cuts in November alone.
Finally, other sectors where spending is not recommended right now include electronics and photographic equipment, as the global supply chain will make it difficult to avoid price increases, from computers to accessories. Imported basic inputs will also be impacted, reducing the accessibility of everyday products, especially processed and canned goods. This has also affected other sectors, with small businesses being particularly hard hit: more than 2,200 entrepreneurs and small businesses have filed for bankruptcy this year, an 8% increase compared to last year, as they are especially vulnerable to Trump’s trade war.