A survey of approximately 2,000 U.S. adults conducted by L.E.K. Consulting found that 68 percent believe they themselves are paying for tariffs, with many planning to trade down to cheaper items or cut back in response.

Consumers believe they are already paying more than what they think is acceptable:

  • 61 percent feel that way about major household goods.
  • 57 percent about apparel, footwear and accessories.
  • 57 percent of autos and vehicle products.
  • 50 percent about beauty products.
  • 48 percent about pet food and supplies.
  • 46 percent feel that way about groceries.

Only roughly a quarter (26 percent) of surveyed respondent expect their financial situation and discretionary spending ability to improve over the next 12 months.

In response to higher prices across the board, the survey notes that 74 percent of U.S. consumers anticipate reducing their spending on apparel, shoes and accessories; 68 percent on major household goods; 63 percent on beauty products; 50 percent on cars and related products; and 46 percent on personal care products.

A significant percentage of consumers who participated in the survey also reported they will spend less on groceries (37 percent) and pet food and pet supplies (27 percent).

“Interestingly, consumers plan to navigate high prices and to cut spending by trading down to lower-priced brands in a number of categories, instead of just curtailing purchases, a phenomenon that consumer companies should be monitoring closely,” said Laura Brookhiser, managing director at L.E.K. Consulting.

For instance, 83 percent of consumers reported that they will buy lower-priced durable household brands or products; 60 percent said they will buy lower-priced clothing, footwear and accessory brands or products; 83 percent anticipate buying lower-priced auto and auto-related brands and products; and 71 percent said they intend to buy lower-priced personal care brands and products.

The survey identified the apparel category as the most sensitive for consumers when it comes to price increases resulting from tariffs. L.E.K. Consulting stated that many apparel brands are increasing promotional activity to ensure they can sell through this year’s styles.

L.E.K. Consulting said prices should be adjusted based on pricing elasticity across categories.

Brookhiser said, “This approach will enable the company to maintain its margins in places where genuine differentiation exists, for instance, sustainability credentials or limited-edition collaborations. It also will help the brands signal fairness to the customer and enable them to flex prices by channel or consumer cohort.”