Your Holiday Spending Just Got A Lot Pricier — By Nearly $29B — Thanks To Trump's Tariffs

Retailers absorb billions too as trade costs ripple through store shelves.

• LendingTree estimates additional costs for consumers and retailers due to tariffs during the all-important holiday shopping period.
• Consumers will likely bear the higher additional costs, estimated at $28.6 billion, straining budgets.
• Clothing and accessories prices are expected to rise, followed by personal care, beauty products, and toys.

American consumers and retailers are expected to incur an additional $40.6 billion in costs related to goods purchased this holiday season due to tariffs, according to a new study.

LendingTree, Inc., an online lending platform, estimates that consumers will bear a higher percentage of those costs, pegged at $28.6 billion, according to a CNBC report based on the company’s data. That translates to around $132 per shopper. Retailers are expected to eat the remaining $12 billion in extra costs.

Retailers and other businesses have faced sharp price increases across a wide range of products in recent months, as import and transportation costs climbed under President Donald Trump’s trade tariffs. 

While some companies initially rushed to import goods before the duties took effect, most products now on shelves — or en route — come with a tariff-driven markup. Those mark-ups will stress consumer budgets as they step out to shop for the holidays. 

“While it may not be earth-shattering, it can have a real impact on many families. It could prompt people to cut back on gift-giving this year or lead to them taking on extra debt,” Matt Schulz, LendingTree’s chief consumer finance analyst, was quoted as saying in the CNBC report.

LendingTree projected that holiday shoppers purchasing electronics will bear the steepest impact from tariffs, facing an average additional expense of $186 per person.

The next-largest increase is expected in clothing and accessories, with an added cost of around $82 per shopper. Meanwhile, those buying personal care items, beauty products, or toys could spend about $14 more each, along with modest increases in food-related purchases.

So far this year, companies selling discretionary items seem to have performed better than those selling everyday staple products. The Consumer Discretionary Select Sector SPDR Fund (XLY) has climbed 7%, while the Consumer Staples Select Sector SPDR Fund (XLP) has declined 3%. In comparison, the benchmark S&P 500 index has risen 16.3%.

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