US consumers rush to buy as Trump tariffs fuel stockpiling, report finds

The inside of a nearby Kroger grocery store is seen in Nashville, Tennessee, US August 17, 2024. REUTERS

One in five Americans have said they are purchasing more items than usual primarily due to concerns over President Donald Trump's tariffs, a CreditCards.com report, showed on Tuesday, reflecting heightened consumer anxiety over potential price hikes and economic uncertainty.

Tariffs tend to be inflationary because they raise the cost of imported goods, prompting businesses to either absorb the higher expenses or pass them on to consumers through price increases. It can lead to broader inflationary pressures as production costs rise across industries that rely on foreign materials and components.

For consumers, the fear of rising prices often fuels stockpiling behaviour, particularly of non-perishable food, toilet paper and medical supplies, as they rush to buy goods before costs escalate further.

When asked about the impact of Trump's planned tariffs on large purchases, 22% respondents said they had a significant impact, while 30% reported some impact, according to the report.

Wall Street is anxious tariffs may accelerate US inflation, prevent the Federal Reserve from cutting interest rates and slow economic growth as uncertainty surrounding trade policies can also weigh on consumer confidence.

One in five Americans have characterised their recent purchases as 'doom spending', and 23% Americans expect they can go into or worsen their credit card this year, the report said.

Doom spending refers to the behaviour of making excessive or impulsive purchases due to uncertainty or anxiety about the future, often triggered by economic instability, geopolitical tensions or worries over looming financial concerns.

Company executives have described to Reuters and on conference calls the challenges of an environment made more uncertain by Trump's shifting plans for tariffs that could upend world trade and prompt some firms to move production to the United States.