1、Simon-Kucher 2025 US Consumer Tariff Market StudyInsights from surveying 2,000+US consumers on their perception of tariffsIntroductioniStock/AleksandarNakicWelcome to Simon-Kuchers 2025 US Consumer Tariff Market Studya comprehensive analysis of how impending tariff policies influence US consumer sen

2、timent and spending behavior.Based on a survey of 2,000+consumers,this study uncovers key factors shaping purchasing decisions,tariff awareness,expected price shifts,and strategies for businesses to mitigate demand fluctuations.Key Insights:Consumer sentiment on tariffs and their perceived economic

3、impactPrice sensitivity and acceptable cost increases across product categoriesSpending adjustments in response to tariff-driven price changesStrategic recommendations to navigate tariff-related market shiftsThese insights provide high-level perspectives that can be further tailored to specific subv

4、erticals and industry needs.If youre interested in a customized analysis,our experts are available to refine the data to your requirements.2Simon-Kucher|2025 Tariff Market StudyClick here to schedule your appointmentUnited States3Simon-Kuchers 2025 Tariff Market Study covered a representative US con

5、sumer sample4753Gender(%)11%25%30%30%3%Gen ZMillennialGen XBoomerSilentGeneration(%)IncomeWho?What?Where?Impact of impending tariff policies on consumer sentiment and spending behaviorThe online study evaluates15%21%18%14%15%8%8%$25k$25k-49.9k$50k-74.9k$100k-149.9k$200k+$150k-199.9k$75k-99.9kSample

6、Size:2,000+everyday consumersSource:Simon-Kucher;2025 Tariff Market Study SurveySimon-Kucher|2025 Tariff Market Study4Executive Summary of FindingsWhile consumers generally anticipate tariffs to negatively impact their purchasing capacity and behavior,there are methods for companies to retain custom

7、ers and mitigate demandSource:Simon-Kucher;2025 Tariff Market Study SurveyGeneral awareness of tariffs is low,with only one-third of consumers fully understanding their implications.80%of consumers see tariffs as pure increases prices,while 20%believe they help protect domestic industries.While most

8、 consumers expect tariffs to affect their daily lives,there is no consensus on the severity or long-term impact.Consumers feel pressure,but overall perception is that price levels are mostly not too expensive yet.However,price increase tolerance varies by category,with core essentials seeing higher

9、resilience to inflation than non-essential purchases.Some consumers plan to decrease their spending focusing more on promotions,trading down or stop purchasing for now.Consumers are likely to seek promotions,trade down,or adjust purchasing channels.Made-in-USA labeling could gain traction as consume

10、rs express preference for domestic production in response.Companies can mitigate the impact by strategic pricing,localized production,and targeted promotions to maintain customer loyaltyWhat product categories are consumers most sensitive to?What are consumers going to do and how can companies react

11、?Who are the people most aware of/impacted by tariffs?Simon-Kucher|2025 Tariff Market StudyConsumer SentimentProduct Category SplitReactions&Mitigation0102035iStock/wikoskiWhile consumers are bracing for the impact of new tariffs,their spending behavior remains adaptable.Businesses that proactively

12、refine pricing strategies and offer transparent value will be best positioned to maintain consumer trust and drive sustainable growth in a shifting market.Matthew SuggettPartner,Simon-KucherCOLOURBOX/M-ProductioniStock/gorodenkoffiStock/Marcus-MilloSimon-Kucher|2025 Tariff Market StudyI am fully ver

13、sedI have some understandingI have heard something in the news but am not fully sureI am not familiar6Consumer SentimentConsumers overall reported limited understanding of tariffsSource:Simon-Kucher 2025 Tariff Market StudyQ:President Trump just announced new tariffs.How familiar are you with what t

14、hese tariffs mean?3%13%53%32%0%10%20%30%40%50%60%601With only 1/3 of consumers fully understanding tariffs,misconceptions may drive reactive spending.Key FindingCONSUMER AWARENESS OF TARIFFSSimon-Kucher|2025 Tariff Market StudyConsumers overwhelmingly view tariffs as a price hike:71%see them as a di

15、rect tax on imported goods,reinforcing impact on everyday costsSimon-Kucher|2025 Tariff Market Study7Consumer Sentiment80%of consumers see tariffs just as a tax on other trade regions to comply with policy proposals,but 20%believe they protect domestic jobs&industriesSource:Simon-Kucher;2025 Tariff

16、Market Study SurveyQ:What do you associate with the term tariffs?Please select the answer that most closely matches your association.Key Finding2%4%9%13%71%Consumer protectionEnsure and maintain competitivenessPolicy moves to impose trade agreementsImport restrictions to support Made In USATax on im

17、ported goodsCONSUMER UNDERSTANDING OF TARIFFS01I am fully versedI have some understandingI have heard something in the news but am not fully sureI am not familiar8Consumer SentimentTariff understanding varies across demographics,so it is important to know who your audience is when communicating pric

18、e changes due to tariffs(1/3)Source:Simon-Kucher 2025 Tariff Market StudyQ:President Trump just announced new tariffs.How familiar are you with what these tariffs mean?801Tariff fluency skews younger.Gen Z and Millennials lead in understanding,making them key audiences for tariff-related messagingKe

19、y FindingCONSUMER AWARENESS OF TARIFFS ACROSS AGE GROUPSSimon-Kucher|2025 Tariff Market Study0%10%20%30%40%50%60%70%80%Baby BoomerGen XMillennialGen ZSilent GenAggregate%I am fully versedI have some understandingI have heard something in the news but am not fully sureI am not familiar0%10%20%30%40%5

20、0%60%70%9Consumer SentimentTariff understanding varies across demographics,so it is important to know who your audience is when communicating price changes due to tariffs(2/3)Source:Simon-Kucher 2025 Tariff Market StudyQ:President Trump just announced new tariffs.How familiar are you with what these

21、 tariffs mean?901High-income householdsare 2x more likely to be well-versed in tariffs,creating opportunities to engage&elaborate on price changesKey FindingCONSUMER AWARENESS OF TARIFFS ACROSS INCOME AND CHILDRENSimon-Kucher|2025 Tariff Market StudyAggregate%$150k-$199.9k$75k-$99.9k$25K-$49.9K$200k

22、+$100k-$149.9k$50K-$74.9K$25KI am fully versedI have some understandingI have heard something in the news but am not fully sureI am not familiar0%10%20%30%40%50%60%10Consumer SentimentTariff understanding varies across demographics,so it is important to know who your audience is when communicating p

23、rice changes due to tariffs(3/3)Source:Simon-Kucher 2025 Tariff Market StudyQ:President Trump just announced new tariffs.How familiar are you with what these tariffs mean?1001Family-focused messaging&offerings will be key in addressing this segments needs,as households with dependents are 2x more li

24、kely to understand tariffsKey FindingCONSUMER AWARENESS OF TARIFFS ACROSS NUMBER OF CHILDREN IN HOUSEHOLDSimon-Kucher|2025 Tariff Market StudyNo children1 child2+childrenAggregate%11Consumer SentimentAlthough there is a general expectation that tariffs will have at least some impact,perspectives var

25、y on the nature and extent of that impactSource:Simon-Kucher 2025 Tariff Market StudyQ:To what extent do you expect these tariffs will have an impact on your daily life?&Q:Do you believe tariffs are beneficial or harmful to the U.S.economy overall?01Simon-Kucher|2025 Tariff Market Study3%9%38%23%27%

26、3%6%41%23%27%Consumers expect tariffs will have high impact on daily lifeConsumers expect tariffs will have no impact on daily lifeNo impactHigh impactCONSUMER PERCEPTION OF TARIFFS ACROSS GENDER30%17%45%17%14%55%Consumers believe tariffs are harmful to the U.S.economyConsumers believe tariffs are b

27、eneficial to the U.S.economyBeneficialHarmfulMaleFemaleHowever,the number of men who believe tariffs are beneficial nearly doubles the number of women who believe the sameThere appears to be high agreement between genders that tariffs will have significant impact12iStock/wikoskiCOLOURBOX/M-Productio

28、nSimon-Kucher|2025 Tariff Market StudyConsumers have been feeling the pressure of rising prices,but theyre making strategic choicesprioritizing essential goods while selectively scaling back on discretionary spending.Tariffs and inflation will continue to shape purchasing behaviorbrands must adapt b

29、y reinforcing value,optimizing pricing strategies,and engaging consumers when it matters most.Shikha JainPartner,Simon-KucheriStock/Kiwis13Product Category SplitConsumers feel some price pressure overall,but have not reached a point where everything is too expensiveSource:Simon-Kucher 2025 Tariff Ma

30、rket StudyQ:How do feel about current price levels in comparison to the goods you purchase?02Simon-Kucher|2025 Tariff Market StudyCURRENT PRICE PERCEPTION BY PRODUCT CATEGORIES:FAIR VALUE SLIGHTLY EXPENSIVE27%33%25%29%22%28%28%25%22%19%23%22%20%23%21%16%37%44%45%41%47%41%41%41%42%44%40%39%40%33%33%3

31、4%OverallBeer/WineApparelNon-alc.beverageAthletic apparelSpiritsHH productsSmall HH appl.Non-perish.foodsFuel/gasPersonal careSporting goodsCons.electronicsFitness/gym equipPerishable foodsLarge HH appl.Prices are slightly expensiveI pay fair value for what I buy64%77%70%70%69%69%69%66%64%63%63%61%6

32、0%56%54%50%14Consumers are mostly prepared to spend more due to tariffs in essential goods,but a significant group is expecting to decrease within discretionary spending categoriesSource:Simon-Kucher;2025 Tariff Market Study SurveyQ:What is your best estimate of what you spent in the last 12 months/

33、month for the following categories and what you expect to spend in 2025 due to(potential)tariffs?Essential goods spend changeBreakdown of change across respondentsPerishable foodshighHousehold productshighPersonal care&beauty productsmediumFuel and gasolinemediumNon-perishable foodmediumNon-alcoholi

34、c beveragesmediumBeer/WinemediumSpiritsmedium22%23%15%12%11%21%19%14%31%33%41%32%34%29%31%29%47%44%44%56%55%49%50%56%Product Category Split02Simon-Kucher|2025 Tariff Market StudyANTICIPATED CHANGE IN SPENDING VS.PREVIOUS MONTH/12 MONTHS BY PRODUCT CATEGORY CONSUMER PERCEPTIONDiscretionary goods spen

35、d changeBreakdown of change across respondentsSmall household applianceshighApparelmediumConsumer electronicsmediumFitness&gym equipmentlowLarge household applianceslowAthletic apparellowSports goodslowAthletic footwearlow34%37%36%37%34%42%38%30%23%24%24%21%27%15%21%21%43%39%40%42%38%43%41%48%The ou

36、tlook is mixed,especially for discretionary goods,as more consumers plan to cut spending in anticipation of potential tariffs.Decreased anticipated spend for upcoming month(s)compared to previous.Unchanged anticipated spend for upcoming month(s)compared to previous.Increased anticipated spend for up

37、coming month(s)compared to previous.GroupCategoriesAnticipated reactions to a 5%increase in%pts.for a 10%increase in%pts.for a 20%increaseNo changeCheaperDown-tradingStopNo changeCheaperDown-tradingStopMost sensitiveFitness&gym equipment-1%-5%-2%+8%-3%-11%-6%+20%Sporting goods-3%-1%-3%+6%-6%-8%-4%+1

38、8%Large household appliances-4%-1%+3%+2%-6%-9%-2%+17%Consumer electronics-5%-6%+1%+9%-7%-13%-5%+25%Mixed sensitivityNon-alcoholic beverages-2%-3%+3%+2%-7%-2%-2%+11%Small household appliances0%-1%-5%+6%-4%-5%-9%+18%Apparel-4%0%-3%+7%-5%-6%-5%+17%Least sensitivePersonal care&beauty products-4%-1%3%+2%

39、-11%-2%+6%+7%Non-perishable food0%0%-2%+2%-6%-3%+4%+5%Perishable foods-2%-1%+1%+2%-7%-2%+3%+6%Fuel and gasoline-4%+4%-3%+2%-10%+6%+1%+3%15Certain consumers are willing to limit discretionary spending beyond an acceptable price increase limit,but will adapt alternative methods to continue purchasing

40、essentialsSource:Simon-Kucher;2025 Tariff Market Study SurveyQ:Imagine tariffs caused the price for the following categories to increase by 5%.How would you respond?&Q:Imagine tariffs caused the price for the following categories to increase by 10%.How would you respond?&Q:Imagine tariffs caused the

41、 price for the following categories to increase by 20%.How would you respond?Product Category Split02Simon-Kucher|2025 Tariff Market Study5%9%9%13%12%8%8%13%10%12%32%43%43%39%49%43%44%45%46%49%45%28%33%36%40%31%38%43%41%38%38%40%38%18%12%11%8%7%6%5%4%3%3%2%ANTICIPATED PURCHASING REACTIONS TO PRICE I

42、NCREASES CAUSED THROUGH TARIFFS BY PRODUCT CATEGORYNo changePurchase cheaper(promo or less units)Down-trading/substituteStop purchase altogether/16iStock/wikoskiTrue,consumers will likely make deliberate trade-offs as pressure builds.To stay ahead,brands need to go beyond reactive pricing and take a

43、 proactive approach emphasizing the value of their offering,refining their market position,and strengthening consumer trust through standing out from competition.Max WalterDirector,Simon-KucherCOLOURBOX/M-ProductioniStock/gorodenkoffSimon-Kucher|2025 Tariff Market StudyOverwhelminglySignificantlySom

44、ewhatA little bitNot at all3%18%34%35%10%0%5%10%15%20%25%30%35%40%80%of consumers have felt noticeable inflation in the last 3 years,influencing their perception of tariffs.Key FindingCONSUMER SENSITIVITY TO PRICE INCREASES IN THE PAST 3 YEARS17Overall,consumers feel growing pain caused by inflation

45、Source:Simon-Kucher;2025 Tariff Market Study SurveyQ:To what extent have your expenses increased over the past 3 years?Reactions&Mitigation03Simon-Kucher|2025 Tariff Market Study79%Fully pass on the added cost to consumersPass on about half of the added cost to consumersPass on less than half of the

46、ir added cost to consumersPass on none of their added cost to consumersIm not sure18Reactions&MitigationConsumers expect more than half of the added cost from tariffs to be passed onto pricingSource:Simon-Kucher;2025 Tariff Market Study SurveyQ:Assume tariffs on imported goods have been implemented

47、in the following categories.How do you expect companies to factor these tariffs into their pricing?10%5%13%22%50%0%10%20%30%40%50%60%18Simon-Kucher|2025 Tariff Market Study0350%of consumers expect the full burden of tariffs to be reflected in prices.Whats your plan to minimize demand impact?Key Find

48、ingEXPECTATION FOR TARIFF COSTS PASSED ON TO CONSUMERS19Companies have the opportunity to adapt to consumers preferences for locally made goodsSource:Simon-Kucher;2025 Tariff Market Study SurveyQ:Do you have a preference for whether these product categories are manufactured domestically or abroad?&Q

49、:Would you be more inclined to purchase products labeled as“Made in the USA”if tariffs increased prices for the following categories of imported products?Reactions&Mitigation03Simon-Kucher|2025 Tariff Market Study0%10%20%30%40%Much more likelySomewhat morelikelyNo differenceNot sure66%of customers s

50、aid Made in USA marketing influences their purchases in selected categories.CONSUMER PREFERENCE FOR PRODUCTION LOCATION3%6%39%20%32%Strong preference for domestically manufactured productStrong preference for foreignmanufactured productConsumer willingness to purchase product marketed“Made In USA”52

51、%of customers prefer domestically manufactured products in their selected categories.What should companies do now to be prepared?We have outlined our framework for how to navigate tariffs in a dynamic global economy Take me to more Simon-Kucher insights!iStock/Courtney-Keating20iStock/ChayTeeiStock/

52、Vadym-PetrochenkoiStock/VioletaStoimenovaSimon-Kucher|2025 Tariff Market Study21Source:Simon-Kucher Managing tariffs:Simon-Kucher framework and best practices for managing tariffs and inflationary environmentsFramework for managing tariffs and short-term cost changes Pricing best practices Align pri

53、cing actions with strategic prioritiesoptimize for volume,revenue,or margin.Gauge market reactions within your competitive set.Analyze impact and interactions between market responses and your own price changes through scenario modeling.Implement targeted price adjustments to reinforce a value-based

54、 portfolio strategy.Evaluate consumer responses to pricing changes:Trading down to lower-priced productsReducing purchase quantityDecreasing purchase frequencySwitching to competitorsExiting the category altogetherConsider category dynamics and anticipate where volume leakage may shift.Avoid reactiv

55、e rollbacks that undermine long-term pricing integrity.Prevent disruptive volume shifts or portfolio gaps caused by misaligned pricing logic.Simon-Kucher|2025 Tariff Market Study22Scenarios impacts matrix Volume,Sales,and GM impactsSource:Simon-KucherCost increase pass-through:Consider multiple rele

56、vant scenarios to assess impact of cost increase pass-through depending on competitors reaction+8%+7%-3%+3%+6%-4%-6%2%-5%+5%+4%-9%-3%1%-9%-8%-2%-10%0%0%-12%-5%-1%-12%-14%-7%-13%Competitors cost increase pass-through100%50%0%Your cost increase pass-through0%50%100%Raising prices to offset cost increa

57、ses(e.g.,tariffs)without competitor alignment can significantly reduce volume,sales,and gross margin.VolumeSalesGMVolumeSalesGMVolumeSalesGMIllustrative exampleSimon-Kucher|2025 Tariff Market StudyConsumer brands and retailersshould act now to be prepared for any eventualities.Schedule your no-press

58、ure consultation today:Click here to schedule your appointmentiStock/Courtney-Keating23iStock/ChayTeeiStock/Vadym-PetrochenkoiStock/VioletaStoimenovaSimon-Kucher|2025 Tariff Market Study24DisclaimerAbout the MaterialsThis presentation and associated services(Materials)have been prepared by theSimon-

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