Consumer Anxiety over Tariffs Slows US Holiday Spending

Holiday spending in 2025 is marked by cautious consumer behavior amid rising prices and tariff concerns, leading many shoppers to delay purchases and prioritize deals, as highlighted by a project44 report showing 80% worry about tariffs increasing costs. Consumers are expected to reduce gift spending by 11%, with many setting strict budgets and opting for cheaper alternatives or experiential gifts, while early shopping is advised to lock in lower prices and avoid shortages. ChatGPT advises avoiding holiday money waste by setting realistic budgets, limiting gifts, reusing wrapping materials, and avoiding impulsive purchases. Meanwhile, European destinations like Germany, France, Italy, and Spain are experiencing significant surges in tourism, reflecting strong travel interest despite economic challenges. Retail experts emphasize the importance of smart shopping strategies such as sticking to lists, stacking deals, and checking sale authenticity to manage holiday expenses effectively. Overall, the holiday season combines cautious spending with strategic planning to navigate economic pressures and maximize value.