EXCLUSIVE: Here’s how consumers react to tariffs, unethical sourcing
When it comes to the financial impact of tariffs and unethically sourced products, U.S. consumers have a pragmatic viewpoint.
Results of a survey of 1,000 U.S. consumers exclusively released to Chain Store Age by InFlow Inventory indicate that respondents will support domestic and ethically sourced products to a point, but price still plays a major role in purchase decisions.
If grocery prices jump due to tariffs imposed by President Trump, 88% of respondents say they will change how they shop. This includes one in three respondents who will cut back, and another one-third who will switch to cheaper brands.
[READ MORE: 85% of global consumers worried about grocery prices]
More than half of respondents (54%) are willing to pay up to 10% more for U.S.-made goods — but if prices get any higher, 83% would walk away. One in three respondents expects companies to absorb the financial impact of tariffs rather than increase prices for consumers.
Overall, 68% of respondents say buying U.S.-made goods is key to supporting the economy, but support peaks among baby boomers (78%), then drops steadily. Two-in-three 66% Gen X respondents, 60% of millennials, and just 54% of Gen Z respondents consider buying American a priority.
Despite generally claiming to care about product origin, nine in 10 respondents don’t check where items are made before buying. For one-in-three respondents, price is the only thing that matters when making a purchase; origin doesn’t even cross their mind.
A 20% price spike from tariffs would prompt nearly nine in 10 respondents to change how they shop. If tariffs drive prices up by 30%, nearly half of respondents want companies to move manufacturing to the U.S. to avoid the added costs. One in three expect businesses to absorb the increase, while only 18% think those costs should be passed on to consumers.
Ethical sourcing
Only about four-in-10 (42%) respondents would stop buying a product if they found out it was produced unethically. Three-in-10 (29%) would consider cheaper alternatives, but ultimately make a decision based on price, and 23% would delay a purchase decision until they had more information about its source.
The remaining 7% of respondents would continue buying a product regardless of the ethical issues. Ethical shopping responses also vary by generation. Half of baby boomers would stop buying from an unethical brand, while just 25% of Gen Z respondents say the same.
Only 9% of respondents always research the products they buy online. The highest percentage (56%) check product information, but not for every purchase, while more than one-in-three (35%) respondents don’t do any product research. See more data here.
