Holiday spending by U.S. consumers expected to see sharpest decline since COVID-19 pandemic

Cartoon by Tan Xiguang

A recent survey by PricewaterhouseCoopers (PwC) reveals that holiday spending by U.S. consumers is expected to see its steepest decline since the COVID-19 pandemic, as rising costs and tariff instability weigh on incomes.

U.S. retailers are bearing the brunt of the Trump administration’s tariff policies. According to Axios, companies that import and sell Christmas trees and other holiday decorations said tariff-related pressures could force staff layoffs, import reductions or cancellations, and price hikes.

The U.S. Federal Reserve said in its latest Beige Book that nearly all Federal Reserve Districts noted tariff-related price increases between mid-July and late August this year. As living costs continue to climb, U.S. consumers are facing mounting financial pressure.