Consumer Holiday Spending Shifts Under Tariff Pressure
They're shopping smarter, spreading costs and prioritizing value over indulgence, per a Wunderkind study.
As U.S. shoppers navigate a tariff-driven economy, spending patterns this holiday season reflect both caution and calculation. According to a recent study from Wunderkind, over half (59%) of consumers describe themselves as “cautious, pessimistic or panicked about the economy,” and 71% say higher prices are their top concern right now. These pressures are changing how people are approaching holiday shopping. Consumers aren’t sitting out the season; instead they’re shopping smarter, spreading costs and prioritizing value over indulgence.
Nearly a third (31%) of consumers plan to spend less this holiday season than last year, while 23% plan to spend more — leaving nearly half maintaining similar spending levels, underscoring a cautious but active marketplace as we head into Black Friday and Cyber Monday.
That being said, there are some generational differences. Wunderkind found that younger consumers are more optimistic: Millennials (37%) and Gen Z (29%) are the most likely to spend more, signaling confidence and enthusiasm for deals. Meanwhile, older shoppers are tightening budgets: 41% of Boomers and 39% of Gen Xers expect to spend less, reflecting continued economic caution.
When it comes to purchase motivators, free shipping (49%) and discount codes (43%) reign supreme. This, Wunderkind notes, confirms “that even in a digitally sophisticated landscape, simplicity drives action. These staples provide both clarity and trust, two essential currencies in a tariff-driven economy.”
Many consumers are starting to employ AI tools to assist in their shopping journey. Over half (53%) say they now use or plan to use AI to discover savings. Millennials lead for regular AI usage, at 46%, while 56% of Boomers say they’ve never used AI to find deals.
Wunderkind says “rising prices and volatility are unignorable. Across all demographics, shoppers are prioritizing affordability, essentials, and reliable savings. Clear pricing and genuine value now matter more than brand loyalty, making trust the true differentiator this Black Friday/Cyber Monday.”