Holiday shopping looks different this year as President Donald Trump’s tariffs raise costs for many goods.
At small businesses, owners say many holiday items made overseas arrived late or cost more because of higher taxes on imports. As a result, shoppers are buying fewer items, choosing cheaper options, or skipping purchases altogether.
Store owners across the country say customers are being more cautious. Instead of buying multiple decorations or higher-priced gift baskets, many shoppers are downsizing or sticking to necessities.
Tariffs have hit some categories harder than others. Toys and games, many of which are made in China, have seen noticeable price increases. Some toy store owners say wholesale prices are up between 5% and 20%, forcing them to raise prices for customers. A doll that cost $20 last year may now sell for $30 or more.
Electronics have also been affected. Companies like Best Buy have raised some prices but say they are offering products at different price points to attract budget-conscious shoppers. Major gaming consoles saw price hikes earlier this year, adding to holiday sticker shock.
Other items, such as jewelry, are seeing price increases mostly due to higher gold prices rather than tariffs — though experts warn tariffs could push prices higher in 2026 if they remain in place.
Holiday decorations, many of which are imported, have also gone up in price. Some shop owners chose not to stock larger or more expensive items at all, saying customers wouldn’t be willing to pay the higher costs.
Economists say tariffs haven’t caused prices to surge across the board. But combined with still-high inflation and a cooling job market, they have added to financial pressure on shoppers.
Polls show most Americans are noticing higher prices for groceries, electricity, and gifts, and many are cutting back. To save money, experts recommend shopping secondhand, buying from discount stores, or choosing U.S.-made items like books and food products.
For many families, this holiday season is less about splurging — and more about stretching every dollar.
