Consumers to buy less, buy more pre-owned to deal with tariff-related price hikes
Many consumers already have a strategy as to how they will cope with expected price hikes due to new tariffs.
Nearly half (49%) of Americans said they will simply buy less, according to a survey by online shopping rewards app Smarty. Consumers are also bracing for price hikes by shifting their spending behavior, with 40% planning to switch to a cheaper brand to combat rising prices.
New tariffs would also add more fuel to the already booming secondhand economy, pushing consumers toward thrift shopping, secondhand marketplaces and resale platforms, according to the survey. Half of the respondents said they are more likely to consider pre-owned goods, with the total rising to 59% for millennials.
[READ MORE: Resale market continues to grow as stigma decreases]
While many consumers, particular younger buyers, are adopting a “buy now before prices spike” mindset, there are some major purchases they’ll hold off on, including buying cars (28%) and making travel purchases (20%).
Other items Americans are holding off on buying assuming new tariffs come in early 2025, include:
21% - Furniture;
21% - Home appliances;
20% - Homes;
20% - Electronics; and
19% - Clothes.
"This research shows that the imposed tariffs will lead to shifts in consumer spending habits this year. Initially, there’s quite a bit of uncertainty, and we expect that uncertainty to grow as the timetable for tariffs unfolds,” said Vipin Porwal, CEO and consumer shopping expert at Smarty. “While consumers need to keep buying their daily essentials, we could see a wide swath of Americans hold off on buying things they don’t need until seasonal sales discounting provides some relief. Savvy consumers will look to ramp up savings and rewards opportunities any way they can.”
Methodology
The Propeller Insights survey commissioned by Smarty surveyed 1,022 U.S. citizens, 18 and over, across the U.S. in January 2025. Survey responses were nationally representative of the U.S. population for age, gender, region and ethnicity.
