The threat of tariffs is compounding consumers’ already heightened concerns about the cost of living, with three-quarters (76%) of people globally concerned about how these trade policies will affect them personally. That is according to a new study of 10,200+ people in 20 countries by Kantar, the world’s leading marketing data and analytics company.
Kantar’s Consumer Sentiment Barometer identified the economy and inflation as the biggest concerns among consumers globally, named by 88% and 85% of people respectively. And with tariffs now threatening to compound ongoing cost-of-living challenges, the threat to consumer spending could soon become very real. One-third of people (32%) already say that meeting their monthly household budget and outgoings is more challenging than last year, and 45% are unable to or struggling to meet these basic household commitments.
Nearly half of the population (46%) already thinks the economy is worse than this time last year. And although tariffs are only just starting to influence prices on the shelf, people are already making changes to cut expenditure: 40% are actively seeking out price reductions and promotions and 35% trading down to cheaper stores.
What’s next – broad support for retaliation
In fact, 86% of people think they’ll need to make some lifestyle or shopping changes because of rising prices. Only one quarter (25%) of people globally think the economy will be in a better position in a year’s time.
While 71% of people say the tariff turmoil is the fault of the US administration, people are generally favourable (55%) of their home government’s response so far. And while 58% of Americans support the US government’s approach, only 13% of people in other countries think their government should agree to US demands. Retaliation is the favoured response among 68% of Canadians, 59% of French respondents and 57% of Mexicans (vs a global average of 38%).
American brands on the back foot?
Almost three in five consumers surveyed outside the US (56%) plan to buy more local products and services in response to tariffs, a trend Kantar identified in previous moments of uncertainty. This is particularly pronounced among the US’s neighbours Canada (66%) and Mexico (69%), as well as in the Philippines (80%), India (77%) and South Africa (71%). And 37% of people outside the US have already indicated they will stop buying American products and services. This rises to 57% in Canada, while 81% of Chinese consumers said they are less willing to purchase US brands1 – numbers that may well increase once tariff price rises have seen wider implementation.
Kantar’s advice for brands in the face of this consumer sentiment
Jane Ostler, Chief Researcher at Kantar said: “People are feeling the pinch and tariffs are compounding the issue. This consumer uncertainty creates an opportunity for businesses to innovate, whether that’s new products or services, changing price architecture, or stretching into related product categories or new territories. Businesses need to constantly review how to stay relevant to people’s functional and emotional needs and how to stand out against the competition – our proven elements for growth.
“And businesses should keep communicating. We saw in past crises that cutting advertising, even for six months, has negative consequences on base sales and growth, which can take years to recover from.”
“While most consumers blame the US administration’s economic policies for tariffs, brands are also in the firing line. More than two in five people think prices are rising because businesses are taking advantage of the cost-of-living crisis and overcharging them. That should be a concern for brands – whether true or not. So marketers need to get pricing right – even with tariffs – and they should understand that’s something they can work to influence.”
Kantar’s Consumer Sentiment Barometer identified the economy and inflation as the biggest concerns among consumers globally, named by 88% and 85% of people respectively. And with tariffs now threatening to compound ongoing cost-of-living challenges, the threat to consumer spending could soon become very real. One-third of people (32%) already say that meeting their monthly household budget and outgoings is more challenging than last year, and 45% are unable to or struggling to meet these basic household commitments.
Nearly half of the population (46%) already thinks the economy is worse than this time last year. And although tariffs are only just starting to influence prices on the shelf, people are already making changes to cut expenditure: 40% are actively seeking out price reductions and promotions and 35% trading down to cheaper stores.
What’s next – broad support for retaliation
In fact, 86% of people think they’ll need to make some lifestyle or shopping changes because of rising prices. Only one quarter (25%) of people globally think the economy will be in a better position in a year’s time.
While 71% of people say the tariff turmoil is the fault of the US administration, people are generally favourable (55%) of their home government’s response so far. And while 58% of Americans support the US government’s approach, only 13% of people in other countries think their government should agree to US demands. Retaliation is the favoured response among 68% of Canadians, 59% of French respondents and 57% of Mexicans (vs a global average of 38%).
American brands on the back foot?
Almost three in five consumers surveyed outside the US (56%) plan to buy more local products and services in response to tariffs, a trend Kantar identified in previous moments of uncertainty. This is particularly pronounced among the US’s neighbours Canada (66%) and Mexico (69%), as well as in the Philippines (80%), India (77%) and South Africa (71%). And 37% of people outside the US have already indicated they will stop buying American products and services. This rises to 57% in Canada, while 81% of Chinese consumers said they are less willing to purchase US brands1 – numbers that may well increase once tariff price rises have seen wider implementation.
Kantar’s advice for brands in the face of this consumer sentiment
Jane Ostler, Chief Researcher at Kantar said: “People are feeling the pinch and tariffs are compounding the issue. This consumer uncertainty creates an opportunity for businesses to innovate, whether that’s new products or services, changing price architecture, or stretching into related product categories or new territories. Businesses need to constantly review how to stay relevant to people’s functional and emotional needs and how to stand out against the competition – our proven elements for growth.
“And businesses should keep communicating. We saw in past crises that cutting advertising, even for six months, has negative consequences on base sales and growth, which can take years to recover from.”
“While most consumers blame the US administration’s economic policies for tariffs, brands are also in the firing line. More than two in five people think prices are rising because businesses are taking advantage of the cost-of-living crisis and overcharging them. That should be a concern for brands – whether true or not. So marketers need to get pricing right – even with tariffs – and they should understand that’s something they can work to influence.”