US Consumers Adjust Spending as Tariffs Take Effect

As President Trump's hefty tariffs on imports took effect, American consumers have begun to feel the financial strain, prompting many to adjust their spending habits. Reports indicate a surge in purchases of electronics like smartphones as consumers rush to buy before prices rise due to the new tariffs, which impose significant levies on goods from countries including China and Vietnam. This shift in consumer behavior has resulted in a notable decrease in overall household debt, with many households paring back on credit card usage amid economic uncertainty. In February, consumer credit declined by over $800 million, marking a stark contrast to previous months of growth. Amid rising costs and potential inflation, shoppers are now prioritizing essential purchases, leading to empty shelves in some stores. Experts suggest that consumers are trying to prepare for higher prices that are expected to follow the implementation of these tariffs.