Uncertainty Around Tariffs Sparks Pandemic-Style Stockpiling
NATIONAL REPORT — Some consumers are purchasing more items than usual based on rising anxiety over potential price hikes due to tariffs and another pandemic, a recent survey found.
One in five Americans say they are "doom spending" — purchasing items excessively or impulsively in response to fears or anxiety about future events, according to CreditCards.com's February report, which examines consumer spending habits since President Donald Trump took office for the second time. Additionally, one in four Americans have made large purchases since November in fear of Trump's tariffs, while 21% have not but plan to soon, reported Convenience Store News' sister publication Chain Store Age.
The most common large purchases were:
- Electronics (39%)
- Home appliances (31%)
- Home improvement materials (25%)
- Furniture (22%)
- Cars (17%)
"It's too soon to say precisely how the new tariffs imposed by President Trump are affecting consumer spending," stated John Egan, credit cards, insurance and personal finance expert contributor for CreditCards.com. "However, they very well could cause some consumers to rethink their buying habits, especially when it comes to major purchases."
Egan added that doom spending could prompt consumers to overspend and strain their budgets. "In addition, doom spending might lead you to pile up credit card debt, which could put you in a financial hole due to interest charges and fees," he said.
The survey also found that three in 10 Americans are purchasing items in preparation for another pandemic and 42% are or will start stockpiling items. The most commonly stockpiled items include nonperishable food (76%) and toilet paper (72%). Nearly half (49%) stocked up on medical supplies and 44% purchased over-the-counter medications. Others secured water filtration systems (21%), home goods or appliances (23%), personal care products (25%), or firearms and ammunition (15%).
When asked about using credit cards to finance their purchases, 28% of Americans said they rely on credit cards for most purchases, 37% use them for some and 35% do not use credit cards for their purchases. Looking ahead, of those who use credit cards, 34% say they are likely to worsen or go into credit card debt this year to secure purchases.
Chain Store Age and Convenience Store News are properties of Chicago-based EnsembleIQ.