US Holiday Spending Expected to Drop on Tariffs, Higher Prices

Holiday spending in the US is poised to decline this year due to Gen Z’s concerns about rising prices, tariffs and a higher cost of living, according to a survey by PricewaterhouseCoopers.

A report released Wednesday shows consumers expect to cut their seasonal spending by about 5% on average compared with 2024. That would mark the first notable drop since the pandemic hit in 2020, PwC said.

Retailers have warned that pressure from tariffs is likely to increase as companies sell through merchandise that was imported before higher levies were put in place. Walmart Inc. Chief Executive Officer Doug McMillon ...