How Tariffs and Market Volatility are Changing Consumer Spending Habits

What's happening:

The stock market continues to serve as a symbolic pulse check on the economy, but its recent volatility is leaving many Americans uncertain. At the same time, tariffs and shifting trade policies are creating ripple effects across day-to-day consumer habits. Together, these forces are prompting people to reassess where, how, and why they spend or invest.

What we found:

• 84% of people agree that the stock market reflects the health of the U.S. economy, highlighting its perceived relevance regardless of personal investment experience.
• Nearly half (46%) feel pessimistic about the current market, though Gen Z stands out as more hopeful, with just 33% sharing that outlook.
• In response to recent market activity, most are either holding steady (45%) or scaling back (34%) on investments. Gen Z remains an exception, with 39% reporting they’ve increased their investment activity.
• Tariffs are prompting pragmatic shifts in consumer behavior, with the most common responses being reducing overall purchase amounts (47%) and seeking lower-cost alternatives/brands (44%).

Why it matters:

In an uncertain economy where headlines shift daily and financial confidence is wearing thin, consumers are pulling back, reevaluating, and making more deliberate choices both on their investments and everyday purchases. Most are avoiding risk, opting to either maintain current habits or scale back. The announcement of tariffs adds another layer of hesitation, pushing shoppers toward affordability. For brands, this means emphasizing value, trust, and transparency to remain relevant in a market where confidence is a scarce commodity.

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