Tariffs Are About to Make Your Holiday Shopping More Expensive

Tariffs are coming for your holiday budget. According to a new LendingTree analysis, holiday shoppers could spend an additional $132 each on average this year thanks to ongoing tariffs.

That's based on what shoppers would have spent last holiday season if current tariffs had been in place. Total extra cost passed on to consumers: $28.6 billion.

Electronics would see the biggest hit—$186 more on average. Clothing and accessories would cost an extra $82. Together, those two categories make up about 61% of the winter holiday tariff burden, LendingTree says.

"People should expect they may have to spend a little bit more this holiday season if they want to get the same amount of stuff they did last year," LendingTree's chief consumer finance analyst Matt Schulz told USA TODAY.

The Tariff Situation

Tariffs are an ever-changing mess. The Supreme Court is set to hear arguments November 5 over whether Trump has the authority to impose tariffs under the 1977 International Emergency Powers Act.

On October 29, Trump changed some tariffs on China after meeting with Chinese President Xi Jinping. He immediately halved a fentanyl-related tariff from 20% to 10%. But plenty of other tariffs remain, leaving the rate at 45% to 47% on certain Chinese imports.

Who Actually Pays

According to LendingTree, consumers and retailers would have faced an estimated $40.6 billion in extra costs during the 2024 winter holidays if current tariffs had been in place. Consumers would've seen $28.6 billion of that. Retailers would've absorbed $12 billion.

Imported goods are huge business during holidays. LendingTree estimates consumers spent $377.7 billion on imported goods during the 2024 winter holidays. That included $117.5 billion on clothing and accessories and $111.6 billion on electronics.

The extra costs to shoppers "isn't going to make holiday shopping easier, but I think people kind of already expect that this holiday season's going to be a little more expensive," Schulz said.

People Already Notice

A monthly Morning Consult survey of 2,200 Americans found for October that consumers continue seeing more price increases from tariffs.

Forty-nine percent of shoppers said they're spending the most on tariff-related price increases at the grocery store. Personal care and gasoline tied for second at 38%. Medication and medical supplies came in third at 36%.

Forty-one percent of U.S. consumers said they're already buying fewer items since everything costs more. Another 25% are considering it. Thirty-eight percent have already adjusted their budget to prepare for higher costs, with 28% considering it.

What You Can Do

Schulz suggests three strategies: sock away a little extra before the holidays, evaluate credit card sign-up bonuses, or comparison shop aggressively.

"Life's expensive in 2025 and there are steps people can take to make things a little easier on themselves," he said.

Not exactly revolutionary advice. Save money, use credit card rewards, shop around for deals. But that's the reality when tariffs add $132 to your average holiday shopping bill.

The Bigger Picture

Tariffs get sold as punishing foreign countries. In practice, they mostly punish consumers who pay higher prices for imported goods. Electronics, clothing, accessories—most of what people buy for holidays comes from overseas.

Retailers absorb some of the cost to stay competitive. But $12 billion absorbed by retailers versus $28.6 billion passed to consumers shows who's really bearing the burden.

The Supreme Court hearing November 5 could change everything or nothing depending on how they rule. Until then, tariffs remain in place and prices stay elevated.

Trump halving one tariff from 20% to 10% doesn't offset the 45-47% rate on other Chinese imports. The math still adds up to more expensive holiday shopping.

The Bottom Line

Budget an extra $132 for holiday shopping this year if you want to buy the same amount of stuff as last year. Electronics cost more. Clothing costs more. Everything imported—which is most things—costs more.

Nearly half of shoppers are already spending extra at grocery stores due to tariff-related price increases. Over 40% are buying fewer items. Another 38% adjusted their budgets.

Holiday shopping was already expensive. Tariffs made it worse. Save extra, use rewards, comparison shop, or just buy less stuff.

That's the choice consumers face this holiday season. Pay more for the same stuff, or get less stuff for the same money.