New survey data shows that American consumers, still recuperating from the financial stress generated by the COVID-19 epidemic and confronting continuous inflation, are changing their spending patterns among continuous economic uncertainty and President Donald Trump’s erratic tariff policies.
As they negotiate a complex economic environment molded by tariffs, increasing costs, and new technology, many Americans are postponing significant purchases and cutting daily expenses, according the second annual American Perspectives study issued Thursday by global tax and audit firm KPMG.
Details and Timing of the Survey
Between April 3 and April 23, 2,500 adults across the country were questioned by KPMG, a crucial time closely following President Trump’s April 2 declaration of a new set of hefty tariffs on Chinese imports. A temporary suspension of some of those tariffs eventually helped to temper this statement; the survey preceded a later relaxation of tensions in the US-China trade dispute.
The survey’s timing catches consumer attitude amid a tumultuous period defined by trade disputes, inflation worries, and more general economic uncertainty.
Key Results: Debt Aversion and Changing Spending Patterns
The poll indicates that American consumers are approaching their expenditure carefully. Many of the respondents said they intended to cut back on lesser expenses to prevent building more debt and to postpone big purchases like cars.
Reflecting a clear change from past years when reduced interest rates and economic relief encouraged more spending and borrowing, nearly 68% of respondents said they were reluctant to take on new credit.
Moreover, forty-three percent of buyers said they would postpone purchasing a car because of worries about tariffs raising prices. This is in line with more general patterns in the automotive sector, where aluminum and steel tariffs have raised manufacturing costs, therefore driving consumer prices higher.
Furthermore, seventy percent of respondents claimed they were either already using or intending to migrate from paid ad-free streaming services to free, ad-supported television channels. This conduct implies that customers are actively looking for strategies to cut regular monthly spending in view of tighter budgets.
The US products line of business leader for KPMG, Matt Kramer, clarified in an interview with CNN that customers are adjusting faster than in the early phases of the epidemic.
“I think it took a little bit long the last cycle (the pandemic) where they just weren’t quite used to making those major adjustments, and maybe the cost of money was a little bit cheaper back then,” he said.
larger Economic Context
The cautious spending patterns shown in the poll fit more general economic data. Household budgets have been strained by inflation, which peaked in 2022 but still is high. Concurrent changes in interest rates have made borrowing more costly, therefore inhibiting debt growth.
From electronics to home goods, Trump’s tariff policies—especially those aimed at Chinese goods—have helped to drive up prices for many items. Although the tariffs were meant to safeguard American businesses, the accompanying price increases have affected consumers’ wallets in a knock-on effect.
Notwithstanding several tariff relief policies implemented recently, uncertainty still exists and causes customers to pause before committing large sums of money.
Changing Services and Cost-saving Strategies
Americans are not just postponing purchases, Kramer pointed out, but also changing suppliers to cut costs.
“They’re looking about for better offers on everything, from insurance policies to streaming services,” he said. As long as tariff-related pricing effects and inflationary pressures exist, this frugal behavior is likely to remain.
The Emergence of Generative AI in Daily Living
Americans are also progressively adopting generative artificial intelligence (GenAI) into their personal and professional life, the poll also found. Up from 41% the year before, about 45% of respondents claimed a notable influence from GenAI.
This implies that customers’ management of time, productivity, and even financial decisions is starting to be shaped in major part by technology.
Changing Views on Higher Education
Another interesting discovery is changing view of higher education. Of those asked, half no longer consider a well-paying job to depend on a college degree.
Kramer said, “Apprenticeships, technical training, and fast-tracked skill development through technology are reshining the job market.” “Many people are realizing that without the time and money required of a conventional four-year degree, other paths can lead to economic success.”
This indicates what the future holds.
According to KPMG’s poll, an American public is clearly adjusting to a new economic reality shaped by careful spending, technological innovation, and changing career aspirations.
Although Trump’s tariff policies have created uncertainty and more expenses influencing consumer behavior, the larger economic environment—including inflation and interest rates—is also causing these shifts.
Businesses absolutely depend on knowing these changing consumer behaviors. Key tactics to keep consumers who are more cost-conscious than ever might be value-based services, flexible pricing, and technology embrace.
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