Trump tariffs could add $40 billion to holiday shoppers' and sellers' costs, LendingTree warns

American user wallets volition beryllium billions of dollars lighter this holiday season due to the fact that of President Donald Trump's tariffs, according to LendingTree.

Sunday marked six months since Trump announced his wide "liberation day" tariffs.

Prices for prime food and consumer goods roseate successful the aftermath of that announcement.

And consumers are acceptable to spot much of the interaction from those tariffs arsenic vacation items that person been stored successful warehouses for months are yet hitting store shelves.

LendingTree, which operates connected an online lending marketplace, utilized 2024 wintertime vacation spending information arsenic a notation constituent for its investigation of the upcoming season.

The institution estimated that the caller tariffs volition summation full holiday costs for consumers and retailers by a full of $40.6 billion.

Consumers volition beryllium connected the hook for astir of the other costs from tariffs, an estimated $28.6 billion.

That translates to astir $132 per shopper.

Retailers are expected to devour the remaining $12 cardinal successful other costs from the tariffs.

"For astir Americans, spending an other $132 astatine the holidays is significant," said Matt Schulz, LendingTree's main user concern analyst.

"While it whitethorn not beryllium earth-shattering, it tin person a existent interaction connected galore families. It could punctual radical to chopped backmost connected gift-giving this twelvemonth oregon pb to them taking connected extra debt," Schulz said.

"That's a prime nary 1 wants to person to make."

Retail analysts person told CNBC that retailers expect consumers to bargain less items this vacation play owed to higher costs from tariffs.

Schultz agreed, calling it an "unfortunate reality" that galore consumers volition person to face.

"That mightiness mean giving less of those items arsenic gifts, oregon it could mean having to suck up the higher costs to springiness your loved ones what they want," Schulz said.

"I uncertainty that we'll spot a immense drop-off successful the magnitude of electronics and apparel that are talented this year, simply due to the fact that they're what truthful galore radical want," helium said. "However, for some, higher prices whitethorn permission them nary choice."

LendingTree estimated that buyers of vacation electronics volition spot the biggest deed from the tariffs, with an mean other outgo of $186 per shopper.

Clothing oregon accessories person the adjacent highest added cost, astatine $82 per shopper, the institution said.

Buyers of personal care items, quality products, and toys volition wage $14 much per shopper, and nutrient and candy volition outgo $12 much per purchaser arsenic a effect of the tariffs.