LendingTree has warned that Trump's tariffs could increase holiday shopping

LendingTree has warned that Trump's tariffs could increase holiday shopping costs for buyers and sellers by up to $40 billion.

Key Points

• LendingTree estimates that the tariffs will increase holiday shopping costs by a total of $40.6 billion.

• The online lending marketplace estimates that the average American holiday shopper will pay $132 more due to the tariffs implemented by President Trump.

• LendingTree's chief consumer financial analyst said, "This could have a real impact on many families. It could lead people to cut back on gift giving this year or take on additional debt."

• According to LendingTree, President Donald Trump's tariffs will leave American consumers billions of dollars lighter in their pockets this holiday season.

• Sunday marks six months since Trump announced his sweeping "Emancipation Day" tariffs.

• Following that announcement, prices of select food and consumer goods increased.

• And consumers will feel the greatest impact of these fees when holiday items that have been sitting in warehouses for months finally arrive in stores.

• Online lending marketplace LendingTree used 2024 winter holiday spending data as a reference point for its analysis of the upcoming season.

• The company estimates that the new fees will increase holiday spending for consumers and retailers by a combined $40.6 billion.

• Consumers will bear the majority of the additional costs from the fees, an estimated $28.6 billion.

• This amounts to approximately $132 per shopper.

• Retailers will bear the remaining $12 billion in additional costs from the fees.

• "For most Americans, spending an extra $132 on the holidays is significant," said Matt Schultz, chief consumer finance analyst at LendingTree. • "While this isn't a major change, it could have a profound impact on many families. It could cause people to cut back on gift giving this year or take on additional debt," Schulz said.

• "It's a choice no one wants to make."

• Retail analysts have told plplnews

• that retailers expect consumers to purchase fewer items this festive season due to the rising cost of tariffs.

• Schulz agreed, calling it an "unfortunate reality" many consumers will have to face.

• "This could mean giving fewer of these items as gifts, or spending more to give loved ones the things they want," Schulz said.

• He said, "I think the number of electronics and clothing gifts will be significantly reduced this year, as many people want them. However, for some, the higher prices may leave them with no choice."

• LendingTree estimates that customers buying electronics during the holidays will be most affected by these fees, spending an average of $186 more per purchase.

• The company said clothing or accessories will see the largest additional cost, at $82 per purchase.

• Due to the fees, shoppers of personal care items, beauty products, and toys will pay $14 more per purchase, and food and candy will cost $12 more.