Now, new research from PYMNTS Intelligence reveals a more subtle yet pervasive erosion of financial stability across a broader spectrum of households, which in turn may impact credit risk.
The ripple effects of global trade policy are reaching beyond abstract debates to impact even those previously considered financially stable, forcing a reevaluation of consumer resilience in the face of persistent price pressures.
The PYMNTS Intelligence report “Stock Out. The Impact of Tariffs on Consumer Product Prices and Availability” offers an in-depth look at how U.S. consumers perceive tariffs affecting product availability and prices. Drawing on a survey of 2,262 U.S. consumers conducted from May 21 to June 6, the study highlights that trade disruptions are moving beyond geopolitical discussions to become a personal financial burden.
Consumers are facing empty shelves and rising prices, with many being directly informed by retailers that tariffs are to blame. The findings paint a portrait of a deeper vulnerability within a consumer economy reliant on well-oiled global supply lines and affordable imports.
Key findings from the report underscore the widespread impact:
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- Twenty-two percent of all consumers, and 31% of paycheck-to-paycheck consumers, were unable to purchase food items because they were out of stock or no longer sold in the U.S.
- Thirty-nine percent of shoppers who encountered missing clothing and apparel were told tariffs were the culprit, while another 33% heard the vaguer “supply chain issues.”
- Sixty percent more financially fragile consumers than their better-off counterparts received tariff explanations for rising food prices, and they heard similar stories 54% more often for household goods and more than twice as often for health and beauty products.
Beyond these headline figures, the report details other insights that should prompt attention from financial services professionals.
Young generations, including millennials and Generation Z, are particularly affected as they tend to be more price-sensitive to American-made products and often opt for imported items when domestic alternatives are more expensive. These consumers are more likely to forgo domestically manufactured products due to price concerns, making them disproportionately impacted as tariffs make imports less available and costlier.
Nearly half of consumers anticipate that tariffs will cause prices to rise at double the current inflation rate. The report points out a “delicate pocketbook balancing act” among consumers, revealing that 4 in 10 individuals whose money is spent the month it comes in possess “super-prime” credit scores of 720 or higher.
Tariff-fueled price inflation has the potential to alter the credit profiles of consumers who, until now, had managed to maintain strong credit, signaling a broader, underlying financial pressure that could shift the risk landscape for banking and lending institutions.
