If you thought your holiday shopping list was pricey last year, brace yourself, because it’s only getting worse this year. Inflation is playing its part, of course, but new this year are President Trump’s tariffs. They’re going to make almost everything more expensive this holiday season, and it’s the shoppers who are going to shoulder most of the added costs, according to a recent analysis by Lending Tree.
They estimate that if today’s tariffs had been in place last year, the total cost of holiday gift shopping would have been a whopping $40.6 billion higher. Let’s break down that number to see what the impact of the Trump tariffs could be this holiday season.
Retailer vs. Consumer Burden
Most of that $40.6 billion would be shouldered by consumers, according to LendingTree, which analyzed data from several sources. They estimate that $28.6 billion of the total holiday shopping tariff cost would be borne by consumers. Only $12 billion would be paid by retailers, which amounts to a pretty terrible deal for shoppers.
Broken down, that $28.6 billion amounts to $132 per shopper on average because of tariffs — an amount that will be hard to swallow for many people. “While it may not be earth-shattering, it can have a real impact on many families,” said Matt Schulz, LendingTree chief consumer finance analyst. “It could prompt people to cut back on gift-giving this year or lead to them taking on extra debt. That’s a choice no one wants to have to make.”
Items With the Biggest Tariffs
Tariffs will impact different holiday gift categories unevenly, depending on how much of that product is usually imported. Here is LendingTree’s estimate of how much each shopper will pay in tariffs this season across popular gift categories.
- Electronics: $186
- Clothing/accessories: $82
- Home decor/furnishings: $81
- Other (jewelry, books/media, etc.): $59
- Sporting goods/leisure: $31
- Toys: $14
- Personal care/beauty: $14
- Food/candy: $12
According to Lending Tree, 69% of all electronics purchased for the holidays are imported, as are 88% of clothing and accessories. They are both extremely popular gift categories, with everyone wanting the latest new video game system or a new winter hat and gloves set. As a result, those two gift categories would account for over 60% of the tariffs paid by each shopper this holiday season.
More Tariff News From Cheapism
- Holiday Decorations May Be in Short Supply Due to Tariffs — According to industry experts, Christmas decor may be harder to find and cost more as a result of the tariffs.
- 10 Grocery Staples That Will Cost More Because of Tariffs — The effect is likely to be felt on your next grocery run, and you may have already noticed.
- How Costco Avoids Passing Tariffs on to Shoppers — The warehouse giant has a few strategies that help shield customers from the direct impact of the tariffs. But how long will that last?
