Fewer Americans are planning to cut back on items due to tariffs

The Ipsos Consumer Tracker asks Americans questions about culture, the economy and the forces that shape our lives. Here's one thing we learned this week.

Why we asked: Tariffs are back in the headlines as the extensions run out, deals are struck with some markets and extended with others. 

What we found: Across each of the product categories we asked about, none saw a rise in people saying they would cut back. Some more discretionary purchases (books, large electronics, alcoholic beverages) saw reasonable declines even. For the more necessary purchases (food, snacks, dairy, household goods) there was very little movement since the last time we asked in April.

If you’re looking for theories, one is that merchants stocked up pre-tariff and haven’t sold off all of those goods yet. Other sellers have, so far, been hesitant to pass their higher costs along to consumer 

But “so far” is key. With costs mounting (General Motors took a $1.1 billion hit in Q2 alone), that is unlikely to continue. Also we might simply not be seeing too much reaction because from the consumer perspective not much has changed. Which isn’t to say that things aren’t maybe going to change as Trump this week put more tariffs in place, but at the same time courts are signaling they might consider his executive order tariffs to be an overreach that should instead be under the purview of Congress. Everyone, especially Federal Reserve Chairman Jerome Powell, is keeping a close eye on what comes next.

More insights from this wave of the Ipsos Consumer Tracker:

Half of Americans don’t know electric vehicle tax credits are expiring; few are planning a purchase

People still largely prefer humans to create content, not AI

A plurality of parents expect to spend the same on back-to-school

Americans think America’s greatness continues to decline

The Ipsos Vibe Check: Here's how Americans feel about the government this week 

The Ipsos Care-o-Meter: What does America know about vs. what does America care about?