‘BUY NOW': Expert WARNS tariffs could SPARK holiday sticker shock

Consumer Spending Trends - American consumers are expected to spend less this holiday season, with surveys indicating a decline of 5% to 10% in spending [1][2][6] - Gen Z consumers are the most cautious, planning to spend 23% less than the previous year [2] - The National Retail Federation forecasts a sales increase of 2.9% to 3.4%, potentially surpassing $1 trillion for the first time [2][13] Retail Environment - Major retailers like Walmart and TJ Maxx are reporting strong early sales results, indicating a potential uptick in consumer spending [2][14] - Retailers are beginning to offer Black Friday prices earlier than in previous years, suggesting a competitive market [7][8] Pricing and Tariffs - Potential price hikes are anticipated due to the elimination of the de minimis tariff, which previously allowed goods under $1,000 to enter the U.S. duty-free [3][4] - Consumers are advised to purchase gifts early to avoid potential price increases and shipping delays [5] Payment Methods - A PayPal survey indicates that half of shoppers plan to use "buy now, pay later" options for their holiday shopping, reflecting a trend towards increased credit usage [9][12] - Retailers are aggressively promoting credit card offers at checkout, which may lead to higher consumer debt [12][20] Consumer Behavior Insights - Despite concerns about spending, anecdotal evidence suggests that consumers are still actively shopping, with crowded stores observed [18] - There is a growing concern about rising credit card debt among consumers, with reports of individuals seeking loans for holiday expenses [20]