$29 Billion Tariff Shock Awaits US Shoppers As Holiday Spending Kicks Off: Report

Benzinga

LendingTree estimates tariffs could act like a $29 billion tax on 2025 holiday shopping, adding about $132 in extra costs per shopper. Electronics and clothing would be hit hardest as retailers absorb part of the burden, potentially reducing spending and slowing economic growth.

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00:00It's Benzinga, bringing Wall Street to Main Street!

00:02Tariffs could make the upcoming holiday season more expensive for Americans,

00:06functioning like a $29 billion tax on 2025 shopping, according to a LendingTree report.

00:12LendingTree said tariffs would have added $40.6 billion to 2024 holiday shopping costs,

00:18with more than 70% passed to consumers, equal to about $132 per shopper.

00:23LendingTree's chief consumer finance analyst, Matt Schultz, said the extra $132 in holiday costs poses real challenges for families

00:32and could lead to reduced gift-giving or increased debt.

00:36The report said electronics and clothing account for most of the added costs because they rely heavily on imports,

00:42making holiday shopping closely tied to global supply chains and tariff policies.

00:46The report said retailers absorbed about 29.5% of the 2024 tariff burden, totaling roughly $12 billion.

00:54Tariffs could reduce spending, lower retailer profits, and slow economic growth.

00:59For all things money, visit Benzinga.com.

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