The Indicator from Planet Money You told us how tariffs are affecting you
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Jun 23, 2025 Listeners share how their spending habits have shifted due to the economic uncertainty and rising tariffs. Many have opted for smaller purchases, wary of bigger expenditures. Panic buying has also become a trend, with people rushing to buy big-ticket items out of fear of future price hikes. Personal stories highlight how these conditions affect everyday decisions, revealing the intricate relationship between tariffs and consumer confidence.
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Tariffs Hurt Consumer Confidence
- American consumer confidence took a sharp dive amid new tariffs introduced by President Trump.
- Despite a recent rebound, consumer optimism remains far below early-year levels, impacting spending behavior.
Small Luxuries Amid Anxiety
- Nicole Potenza spends less on big purchases due to recession fears but indulges in small comforts like coffee and takeout.
- This behavior aligns with the "lipstick index" theory in economic downturns.
Tariffs Drive Panic Buying
- Though tariffs haven't caused broad inflation yet, their presence and talk influence consumer behavior.
- Many consumers rush to purchase big-ticket items ahead of anticipated tariff-driven price rises.