American consumers are growing more anxious about their financial futures, with new data showing rising stress, cautious spending, and concerns about looming tariffs. According to a new study by the Kearney Consumer Institute, U.S. shoppers are moving from budget-optimizing to outright sacrificing, with many unsure about what—and whether—to buy.
Kearney's Consumer Stress Index shows that 54% of U.S. consumers are now concerned about trade disputes, up from 36% in late 2024. The pressure is being felt across all income groups, but especially among middle- and upper-income Americans, who are now taking defensive financial positions.
"Tariffs could be the end of true consumer resilience," said Kearney's Katie Thomas in a written statement obtained by USA Today, warning that rising costs may force shoppers to eliminate entire categories of spending. This anxiety is reminiscent of early pandemic uncertainty, with consumers expressing widespread confusion and frustration about daily decisions, Thomas added.
At the same time, report data shows March retail sales were up 0.6%, driven largely by higher-income households making purchases early to get ahead of anticipated price hikes. But experts caution this isn't a sign of confidence—it's a sign of pragmatism. The wealthiest 10% of consumers, who account for half of all retail spending, are pulling purchases forward before inflation and tariffs bite.
The Bain & Company/Dynata Consumer Health Index shows a similar trend:
- Middle-income earners are cutting back on debt and increasing savings.
- Upper-income shoppers saw a sharp drop in financial confidence due to market turmoil.
- Lower-income consumers remain relatively stable, bolstered by a strong job market—for now.
As tariffs begin to hit goods like clothing and electronics, analysts warn that price increases could push more Americans over the edge. While consumers are still spending, the mood is shifting fast. "They're not thriving in this uncertainty," Thomas said, "just enduring it."
© 2025 Latin Times. All rights reserved. Do not reproduce without permission.
