Consumers May Pull Back Amid Tariffs: Experts Urge Against Stockpiling Goods

Many consumers are on edge amid new tariffs taking effect. A new survey found that 57% of U.S. adults think raising tariffs will hurt the average American, just 19% believe it will help.

"Shoppers are still wrapping their heads around what categories are going to be impacted," said Stephanie Carls, a retail insights expert with RetailMeNot. "Consumers are way more cautious, and they want to stretch their dollar."

A Yale Budget Lab report found new tariffs could cost the average household $3,800 this year. Recent consumer data also points to a decline in certain spending areas including at restaurants and bars.

"We're starting to see consumers be conservative," said supply chain expert and business consultant Kimberly Reuter. "They're toning back on their spending. Luxury spending is starting to go down a little. We're seeing restaurant attendance is starting to go down. Those are the first signs of people starting to pinch the pennies."

However, some experts urge against stockpiling goods amid tariffs. Reuter said, "My recommendation is not to do that. It creates a trickle effect, because what it does is it artificially increases the price of the product." She hopes consumers will learn from mistakes made during the pandemic when hoarding and stockpiling were common.

"We created more of a crisis in COVID than really existed," Reuter said. "What we learned is don't panic."