US consumers are dealing with changes in tariffs and price pressures, leading them to rethink their shopping habits.

Taiwan • Business • 04/16 00:49
US consumers are dealing with changes in tariffs and price pressures, leading them to rethink their shopping habits.

In spring 2025, American consumers are facing changes in shopping behavior due to changes in tariff policies, rising prices, and low consumer confidence. Tariffs increased to 27%, affecting fast fashion brands like Shein and Temu, causing consumers to turn to the second-hand market. Retailers, unable to offer discounts because of supply chain costs, are seeing consumers pursue rational luxury. After the pandemic, consumers have shifted from emotional spending to conscious consumption and with a focus on sustainability. Retailers need to improve communication and reorganize supply chains to address these challenges.

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US consumers are dealing with changes in tariffs and price pressures, leading them to rethink their shopping habits.

In spring 2025, American consumers are facing changes in shopping behavior due to changes in tariff policies, rising prices, and low consumer confidence. Tariffs increased to 27%, affecting fast fashion brands like Shein and Temu, causing consumers to turn to the second-hand market. Retailers, unable to offer discounts because of supply chain costs, are seeing consumers pursue rational luxury. After the pandemic, consumers have shifted from emotional spending to conscious consumption and with a focus on sustainability. Retailers need to improve communication and reorganize supply chains to address these challenges.

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Tariff Policy and Price Pressure: The First Warning Sign for Consumers

In April 2025, the average effective tariff rate in the United States rose to 27%, the highest level since 1901. According to Yale University forecasts, this figure may further climb to 28% in the coming weeks. The U.S. government recently imposed tariffs as high as 145% on Chinese goods and removed the "de minimis" exemption for low-value Chinese goods, directly impacting the price advantage of fast fashion platforms like Shein and Temu.

These policies have led to price increases in everyday items such as clothing, appliances, and food, placing substantial pressure on consumers. According to a survey by Numerator, 83% of American consumers said they would change their shopping behavior to cope with the impact of tariffs, with 48% looking for discounts or coupons, 32% choosing to delay purchases, and 31% stocking up in advance.

Retailers Unable to Offer Discounts, Consumers Turn to "Rational Luxury"

In 2024, retailers stimulated sales through significant discounts, but the situation changed in 2025. Due to rising supply chain costs and tariff pressures, retailers can no longer offer the same deals as last year. Moody's downgraded the retail industry's outlook from "stable" to "negative," noting that clothing and department store operators will be the first to be affected.

In this context, consumer shopping behavior has become more complex. According to Insider Trends, even in the grocery category, consumers are simultaneously seeking discounts and small indulgences, such as high-quality chocolate or imported coffee. This behavior of "rational luxury" reflects consumers seeking psychological comfort under pressure.

Fast Fashion Stumbles, Secondhand Market Rises

Fast fashion brands like Shein and Temu have long relied on Chinese manufacturing and low-price strategies to attract consumers. However, as tariff policies tighten and the de minimis clause is removed, these platforms' price advantages are quickly eroding. Shein has begun offering free shipping and returns to retain U.S. customers.

Meanwhile, the secondhand market is rapidly rising. Platforms like ThredUp, Poshmark, eBay, and The RealReal offer a large selection of high-quality, reasonably priced secondhand clothing, attracting consumers who want to save money without sacrificing quality. According to a report by Passby, some consumers have shifted their shopping budgets to the secondhand market, seeing it as an effective strategy to combat rising prices.

Re-educating Consumer Behavior: From "Instant Gratification" to "Conscious Consumption"

The phenomenon of "doom spending" (emotional spending) that emerged during the pandemic is gradually being replaced by "conscious consumption" in 2025. Consumers are beginning to set shopping goals, use price tracking tools, subscribe to product alerts, and learn how to identify quality and value. According to research by PYMNTS, consumers who clearly understand the impact of tariffs are more likely to choose not to purchase when prices rise.

Additionally, consumers' understanding of "sustainability" is also deepening. Many brands market themselves as "eco-friendly" or "made from recycled materials," but in reality, they still encourage overconsumption. Experts suggest that true sustainable consumption should involve buying fewer, durable, and genuinely loved items, rather than being misled by marketing jargon.

Retailers' Response Strategies: Transparent Communication and Supply Chain Restructuring

Faced with dramatic changes in consumer behavior, retailers are also adjusting their strategies. Passby suggests that retailers should strengthen communication with consumers, clearly explaining the reasons for price changes and promotional plans to maintain a stable customer base. At the same time, diversifying the supply chain becomes crucial, including finding suppliers in tariff-free countries or increasing the proportion of local procurement to reduce tariff risks.

However, restructuring the supply chain is not an easy task. Moody's points out that for complex products like footwear, relocating production may result in decreased quality or increased costs. This also means that in the short term, retailers still need to strike a difficult balance between cost and price.

References

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