Shoppers aren’t just paying more — they’re worn down by it.
Shoppers aren’t just paying more — they’re worn down by it.
Betty Lin-Fisher, USA TODAYSat, March 7, 2026 at 10:03 AM UTC
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Higher prices have become a fact of life for many Americans — and it’s taking a toll.
New research shows shoppers are increasingly exhausted by inflation and tariffs, reshaping how and where they spend.
In a study by Simon-Kucher, only about one-third of respondents said they understood the impact of tariffs. But "the dominant consumer takeaway remained simple: prices are going up, and households are paying for it," the study said.
In another survey by the Kearney Institute, shoppers aren't just cutting back on buying. They've been redistributing their spending across categories, price tiers and channels.
For instance: 54% ate out less, 44% bought fewer clothes, including 21% who purchased thrifted or resale apparel and 37% substituted for cheaper brands.
Shoppers are worn down by higher prices
U.S. consumers have been going through what Shikha Jain, a Simon-Kucher partner and head of consumer for North America calls a state of "perma-crisis" or permanent crisis and constant economic volatility since the COVID pandemic in 2020. First, there was supply chain uncertainty, followed by tariffs and now more geopolitical happenings that could affect costs, including oil and gas prices, Jain told USA TODAY.
"After several years of sustained pressure, consumers aren't just adjusting to higher prices, they're worn down by them," the report by the commercial strategy consulting firm said. "Even modest increases can feel heavier than they are because they layer on top of years of financial strain."
Seventy-eight percent of consumers said in the "2025 U.S. Consumer Tariff Market Study," which was conducted monthly in 2025 starting in February, said inflation had impacted them somewhat to overwhelmingly over the past three years.
Women also consistently said in the report, which surveyed 2,000 people, that they felt the price squeeze more acutely than men.
Consumers reported noticing more pricing increases later in the year in 2025, with 60% of shoppers saying electronics were costlier, according to the report. Shoppers also said they noticed rising prices throughout the year for food, apparel, and home essentials, the report said.
Shoppers are increasingly price sensitive
Eighty percent of consumers surveyed by Simon-Kucher were worried about continued inflation and say "prices have begun to feel expensive," said Jain.
"People are most accepting of a 5% price increase," said Jain. "After that, they start to evaluate their purchasing decisions by either trading down to a cheaper alternative, waiting for a promotion or not purchasing at all."
Retailers tend to hold prices on essential items, like pantry staples, Jain said, while raising prices on products or categories that are less price sensitive for shoppers.
Some people may want a very specific kind of peanut butter or chocolate and may buy those "favorites," regardless of a price increase, Jain said.
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At the same time, there will be brands or products that consumers "care a little less about and are willing to compromise on the brand or the price or the quality" by trading down to a private label or cheaper version.
Shoppers are worn down by higher prices and are changing their shopping behaviors, according to two new studies,.COVID, inflation and tariffs reshaped behavior
Often periods of macroeconomic crisis will shift consumer behavior, Jain said.
The COVID pandemic and shut down made consumers shift to online ordering and delivery, first because it was a necessity, and then because it was a convenience, she said.
Tariffs, meanwhile, have pushed prices up, especially for products that are coming from heavily tariffed countries in East Asia, Jain said. So consumers have started to further embrace the idea of upcycling, recycling and thrifting, Jain said.
Time will tell if the new shopping behaviors will continue to take hold, she said.
Do you live a 'comfortable' life?: Many consumers say they don't.
Consumers may look 'confusing,' but they’re frustrated
For more than a year, consumers have been described as both "choiceful, cautious and discerning" and also as selectively splurging, Katie Thomas, who leads the Kearney Consumer Institute, wrote in a recent study, "The confusing consumer: managing a fragmenting consumer base."
Their fragmented behaviors — "shopping as a form of comfort, consistency, and control" while struggling with finances can appear confusing, the study said.
The study surveyed 24,000 consumers globally and 2,000 in the United States for its latest quarterly report.
"Consumers have different perspectives when it comes to tariffs and their specific impact, but nearly all consumers are frustrated over prices that seem to continue to increase. 57% of consumers cited inflation and affordability as a top economic concern," Thomas told USA TODAY.
Another recent Kearney Institute study examined how consumers on both legs of the K-economy, which is typically used to describe both financially affluent and struggling households, are behaving in atypical ways.
Lower-income consumers are splurging selectively while cutting down on essentials, and high earners are trading down in groceries while splurging on experiences.
Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@USATODAY.com or follow her on X, Facebook or Instagram @blinfisher and @blinfisher.bsky.social on Bluesky. Sign up for our free The Daily Money newsletter, which breaks down complex consumer and financial news. Subscribe here.
This article originally appeared on USA TODAY: Why Americans are trading down, cutting back and rethinking spending
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