Trump's tariff anxiety fuels stockpiling, big purchases, and ‘doom spending’ in US: Report

The February 2025 report examined consumer spending habits since Trump took office, focusing on how economic factors, including tariffs, are shaping purchasing behaviour.

Tariff fears driving purchases

According to the report, 19% of respondents said they were purchasing significantly more (5%) or slightly more (14%) items than usual. Of that group, 29% cited fear of Trump’s tariffs as a major factor, while 37% said tariffs had some influence on their buying decisions.

Trump has announced sweeping tariff hikes to counter what he described as unfair trade practices. He proposed a 25% tariff on imported automobiles, semiconductors, and pharmaceuticals, as well as new duties on steel and aluminium imports, eliminating exemptions for allies and key trade partners like Canada, Mexico, and the European Union.

Last week, the US president directed his economic team to devise plans to impose reciprocal tariffs that match the tariff rates of every country product-by-product.

Economists warn that tariffs tend to be inflationary, as businesses either absorb the added costs or pass them on to consumers. The uncertainty has prompted a rush to buy essential goods before prices rise.

Stockpiling on the rise

The report found that 42% of Americans are stockpiling items, primarily food and toilet paper. Since November 2024, 22% have already begun stockpiling, while another 20% plan to start soon. The most commonly stockpiled items include non-perishable food (76%), toilet paper (72%), and medical supplies (49%).

Around 30% of Americans reported making large purchases of over $500 since Trump’s re-election, with electronics (39%), home appliances (31%), and home improvement materials (25%) topping the list.

‘Doom spending’ and credit concerns

One in five Americans characterised their recent purchases as “doom spending”—buying impulsively or excessively due to fears about the future. Meanwhile, 23% of consumers expect to go into or worsen their credit card debt this year.

“Accumulating or adding to credit card debt is not a good idea at any time, unless you can fully pay off balances each month and avoid interest charges,” said John Egan, a personal finance expert at CreditCards.com.

“Your best bet is to use cash for big and small purchases whenever possible. Or you can look for 0% financing when making a big purchase, allowing you to avoid interest charges as long as you pay off the balance within a certain period of time.”