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Trump tariffs could add $40 billion to holiday shoppers' and sellers' costs, LendingTree warns

1. Tariffs will increase holiday costs by $40.6 billion for consumers. 2. Average additional spending per shopper will be around $132 this season. 3. Consumers may cut back on gifts or incur more debt due to tariffs. 4. Electronics will face the highest price increases, averaging $186 per shopper. 5. Retailers expect fewer purchases due to the increased costs from tariffs.

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FAQ

Why Bearish?

Higher consumer costs typically lead to reduced spending, impacting retail stocks in the S&P 500. Historically, when consumer spending decreases, it can create drag on overall market performance.

How important is it?

The article highlights an immediate consumer spending trend due to tariffs, directly affecting sectors within the S&P 500.

Why Short Term?

The holiday season is immediate, and spending habits won't change overnight. The impacts of tariffs will be felt quickly as consumers adjust their buying patterns.

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