US consumers feel the hit of tariffs and inflation

Around 80% of US consumers have felt noticeable inflation over the past three years and a majority of consumers expect the burden of tariffs to be added to prices. That is according to a survey of 2,000 US consumers conducted by consultancy Simon-Kucher, which reveals how tariffs will impact spending patterns.
Consumers in the United States, like in much of the rest of the world, are expecting to feel the pain of tariffs and inflation. US President Donald Trump has repeatedly announced (or threatened) sweeping tariffs on trading partners around the world, though the reality of when they will take effect has been complicated by various delays related to ongoing negotiations and repeated backtracking.
Though the exact impact of tariffs is not very clear, the overall uncertainty caused by back-and-forth tariff threats has itself had a negative economic impact. Regardless of exactly what happens, most consumers are aware of tariffs and many have chosen to adjust their spending.
Perceptions on tariffs
The survey shows that 53% of US consumers have some understanding of tariffs, with 32% saying they are fully versed in the issue. The respondents also overwhelmingly view tariffs as a price hike on the goods they purchase, with few believing the positive spin, like for example that they will lead to more competitiveness or more domestic US production.
Most consumers believe that tariffs will be harmful to the economy, with around 27% saying that they will have a significant impact on their daily lives. Despite that, more than half of respondents said that prices on everyday products are not currently that expensive – though that is likely to change as tariffs come into effect.
“Consumers have been feeling the pressure of rising prices, but they’re making strategic choices, prioritizing essential goods while selectively scaling back on discretionary spending,” said Shikha Jain, partner at Simon-Kucher.
“Tariffs and inflation will continue to shape purchasing behavior – brands must adapt by reinforcing value, optimizing pricing strategies, and engaging consumers when it matters most.”
Half of respondents also report believing that costs related to higher tariffs would be passed onto them, the consumers. Another 22% believe about half of the price increased would be passed onto them. Considering that, brands should look for ways to absorb tariffs without passing costs onto their customers.
The inflation blues
Nearly 80% of consumers have felt noticeable inflation of the past three years, which has influenced their perception of tariffs. That comes as no surprise at inflation has been a stubborn issue in the mix since at least the Covid-19 pandemic, only slightly subsiding for brief periods since then.
The price of eggs has by now become a running joke, but prices have indeed on grocery goods have indeed been soaring across the US. In fact, Trump himself vowed specifically to bring egg prices down in his second term. Prices have remained high despite that promise, with supermarket visits hitting low and middle-income Americans hard.
Now, with tariffs just on the horizon, consumer prices could rise even further. Once tariffs are actually in place, many economists believe that inflation is going to worsen, though it is unclear when: Some retailers stocked up on goods in anticipation of tariffs, bringing prices down in the short term.
“Consumers will likely make deliberate trade-offs as pressure builds,” said Max Walter, director at Simon-Kucher.
“To stay ahead, brands need to go beyond reactive pricing and take a proactive approach, emphasizing the value of their offering, refining their market position, and strengthening consumer trust through standing out from competition.”