American consumers are adjusting their spending habits in response to President Donald Trump’s recent tariff policies, as revealed by KPMG’s latest survey. The findings indicate a significant shift in consumer behavior, with many opting to delay purchases and avoid accumulating debt amid economic uncertainty.

Key Takeaways

• 68% of consumers are reluctant to take on new credit.
• 43% plan to delay car purchases due to tariffs.
• 70% are switching to free ad-supported TV instead of paid streaming services.
• The impact of generative AI is growing in personal and professional lives.

Overview of the Survey

KPMG’s second annual American Perspectives survey, conducted between April 3 and April 23, 2025, included 2,500 adults. This survey aimed to assess how consumers are navigating their financial situations amidst changing economic conditions, including the recent tariffs announced by Trump on April 2. The survey was conducted before the recent easing of tensions in the US-China trade war.

Consumer Spending Patterns

The survey results indicate that American consumers are becoming increasingly cautious with their spending. Many respondents reported plans to hold off on major purchases to avoid incurring debt. This shift is largely attributed to the economic fallout from the pandemic and the subsequent rise in inflation.

• Debt Aversion: 68% of respondents expressed a desire to avoid taking on additional credit.
• Delayed Purchases: 43% indicated they would postpone buying a car due to the impact of tariffs.
• Cost-Saving Measures: 70% are opting for free ad-supported TV as a cost-effective alternative to subscription-based streaming services.

Adapting to Economic Changes

Matt Kramer, KPMG’s US products line of business leader, noted that consumers are quickly adapting their spending habits in response to economic pressures. Unlike during the pandemic, where adjustments took longer, consumers today are more proactive in managing their finances.

• Spending Smart: Consumers are actively looking for ways to save money, including switching service providers for insurance and entertainment.
• Financial Awareness: The survey highlights a growing awareness among consumers about their financial health and the importance of making informed purchasing decisions.

The Role of Generative AI

In addition to tariffs, the survey also explored the influence of generative artificial intelligence (GenAI) on daily life. Approximately 45% of respondents reported that GenAI significantly impacts both their personal and professional lives, reflecting a growing trend in technology adoption.

Changing Views on Education

The survey also revealed shifting perceptions regarding higher education. Half of the respondents believe that a college degree is no longer essential for securing a well-paying job. This change is attributed to the increasing value placed on apprenticeships and technical training, as well as the rapid advancement of technology that allows individuals to acquire skills more quickly.

Conclusion

As American consumers navigate the complexities of a post-pandemic economy, the impact of Trump’s tariffs is evident in their spending habits. With a focus on financial prudence and adaptability, consumers are reshaping their purchasing decisions in response to economic challenges. The findings from KPMG’s survey underscore the importance of understanding these trends as they continue to evolve in the coming months.

Sources

• Trump’s tariffs are changing the way Americans spend, CNN.