The United States will usher in its annual "Black Friday" shopping season on November 28. However, some organizations have warned that the cost of this year's shopping season will increase significantly due to the U.S. government's tariff policies.
Black Friday in the United States is similar to China's "Double Eleven" online shopping festival. American retailers typically launch promotions on the first day after Thanksgiving when they reopen to meet consumer demand for year-end shopping. This shopping season is also considered a barometer of Christmas sales for American businesses and is the most important promotional window of the year.
According to predictions by online lending platform LendingTree, tariffs will increase total holiday costs for consumers and retailers by $40.6 billion. Of this, consumers are expected to bear the majority of the additional costs, amounting to $28.6 billion, equivalent to an average extra $132 per shopper; retailers will bear the remaining $12 billion in additional costs.
According to Matt Schulz, chief consumer finance analyst at LendingTree, an extra $132 during the holidays is a significant amount for most Americans. While it may not cause drastic changes, many families will be affected, such as reducing gift-giving or incurring additional debt.
Analysts also warned that retailers expect U.S. consumers to reduce their purchases on Black Friday due to rising costs caused by tariffs.
LendingTree also anticipates that electronics consumption will likely be hit hardest by tariffs this year, as consumers may need to spend an additional $186 per person on such purchases. Clothing and accessories will see the second largest cost increase, requiring an extra $82 per consumer.
Tariffs spark widespread concern
Last month, supply chain data company Project 44 released its annual report on U.S. consumer holiday shopping, providing a detailed analysis of how consumers are preparing for this year's shopping season. Tariffs were identified as one of the biggest concerns for consumers, with 80% of respondents believing they would lead to price increases.
In the survey, 70% of consumers said they would reduce their gift purchases if tariffs led to higher prices. Furthermore, 45% of consumers stated they were unlikely to make another purchase if retailers were unable to deliver on time.
Wells Fargo Adam Davis, General Manager of Retail Finance, pointed out that tariff policies mean retailers face pressure to raise or adjust prices, and the impact on consumers is obvious, with some goods becoming more expensive than before.
In addition, he also warned about inventory issues. Davis stated that he expects there will be inventory on shelves this holiday season, but the variety of some items may not be as abundant as in previous years. Given tariff pressures, retailers are being very cautious in selecting items to stock and have carefully considered product availability.
Davis also believes that holiday season promotions may be reduced this year because retailers are not stockpiling as much inventory as in the past, and therefore will not be pushing sales as aggressively. He also predicts that the most affected products this year will include clothing, footwear, technology products, and toys.
(Article source: CLS)
