US Consumers Cut Summer Spending Following Trump Trade Tariffs

Donald Trump utilized emergency powers to levy steep new taxes on various imported goods after returning to power in January. These trade tariffs have led to a measurable decline in consumer spending and a shift in travel behavior across the United States.

Data from WalletHub indicates that 45 percent of consumers report the tariffs are affecting their travel plans, with nearly two-thirds intending to spend less this summer than they did the previous year. A separate survey of 1,516 consumers conducted by KPMG found that 50 percent are cutting their spending specifically due to the tariffs.

Economic anxiety has increased alongside these spending cuts. According to the KPMG data, over 70 percent of surveyed consumers anticipate a recession within the next 12 months.