How Will Trump Tariffs and Other Policies Impact Consumer Shopping Habits?
InMoment’s Strategic Insights team recently conducted a Market Pulse survey and social media analysis to explore consumer perspectives on whether their shopping habits are expected to change or remain consistent in response to President Donald Trump’s proposed policies, both before and after implementation.
While countless articles, blogs, and posts discuss the predicted economic impact of “Trump Tariffs,” which refer to policies the new administration has proposed on imported goods, few focus on how consumers plan to adjust their shopping behavior. As a customer experience company, InMoment was curious about consumers’ perspectives on whether their shopping habits will change—or remain the same—in response to his proposed policies. So, a market pulse survey was conducted with a representative sample of the U.S. population to see what they thought.
Current Impact (Before Trump Tariffs and Policies)
Although 46% of survey respondents said they weren’t going to change their shopping habits, posts on social media sites show that people are discussing buying or stocking up on products before policies are enacted. Conversations are around purchasing products they typically buy or are planning on buying.
The following quotes were pulled from our analysis:
- “Getting some electronics before tariffs shoot up the prices”
- “I’m planning on buying a hybrid car, as we expect green tax credits to be axed”
- “I will start the year by cutting back on all of my spending, so to prepare what may happen with the new administration”
- “Buying things in December before new tariffs are implemented”
Anticipated Shopping Behavior (After Trump Tariffs and Policies)
Around 60% of respondents said they are expecting to change their shopping behavior, with more expecting to shop less as opposed to shopping more. Respondents are most likely to shop less for electronics and around 50% of respondents are expecting to spend less on dining. People think tariffs will have the biggest impact on their shopping habits compared to other policies like changes in trade agreements and immigration policies.
The following quotes were pulled from the survey and social media analysis:
- “I will be shopping a lot less due to prices going up. And I will have to budget and plan beforehand”
- “With all the proposed tariffs, prices will go up for groceries and other products.”
- “I would just have to be more mindful while shopping and only shop for necessities”
- “I think groceries will be higher so I will be buying less and more generic name items”
Impact of Trump Tariffs and Policies
Most respondents (56%) expect prices to increase for goods and services. Over 50% expect prices to increase for clothing/footwear, groceries, entertainment, home products, electronics, and gas.
The following quotes were pulled from the survey and social media analysis:
- “Rising prices for food and gas will keep most people at home”
- “Things will be more expensive but my shopping habits will be the same.”
- “Wait til the tariffs hit and immigration mandates affect the agricultural industries even tomatoes cost will be insane”
Differing Expectations
The biggest discrepancies are seen when looking at political views. Those who consider themselves more Liberal are more likely to expect to shop less on products, while those who are more Conservative expect to shop more. The biggest gaps were found for clothing/footwear and groceries – Liberals were 3X more likely to say they expect to shop less. There are even bigger gaps when asked about the impact of the policies on prices with Conservatives 8X more likely to say that prices for clothing/footwear will decrease and 7X more likely to say that grocery prices will decrease.
Recommendations for Businesses
Policies are out of companies’ control, consumers are confused with conflicting messages, and it is unclear what changes will happen and when. Here are three key strategies to employ in order to maintain the integrity of your business in strenuous economic times.
1. Prepare A Clear Communication Strategy
A clear communication strategy ensures that you know how to relay important information to all of your customers. In order to do so, you need to create specific templates for each communication platform so that deploying customer communication is as easy as adjusting the message for each platform.
2. Train Employees on Core Values
When consumers are faced with choices about where they will take their business, they will often turn to the organization that makes them feel the most valued. It is crucial that frontline employees, contact center agents, managers, and executives are all up-to-speed on your organization’s values so that they can be reflected during customer interactions.
3. Monitor Social Media Platforms
Social media monitoring is one of the most important things to do in order to stay on top of market trends and shifts in customer sentiment. Use social media monitoring as a tool to connect with your customers and position your organization at the front of market shifts.
Stay on Top of Market Shifts with InMoment
To see how customer expectations play out, InMoment plans to conduct the same study after the new administration has been in office for some time. Be sure to check back often for updated findings.
When new federal legislation affects the way your business operates, you must have a top-of-the-line CX program to retain customers during tough economic times. With InMoment’s platform, you can monitor customer feedback from multiple sources, all in one place. See how InMoment can help your business by scheduling a demo today!
