President Trump says he may attend Supreme Court arguments in tariff case
President Trump said he may attend Supreme Court arguments on the tariffs because the case is so important to the country’s financial security.
The ongoing tariffs could put pressure on holiday budgets.
On average, holiday shoppers could spend an additional $132 per person, according to new analysis from Lending Tree, an estimate based on what they would have spent last holiday season if current tariffs were in place.
A total of $28.6 billion will be passed on to shoppers. The biggest increases were seen in electronics, where shoppers spent an extra $186, and clothing and accessories, which saw shoppers spend $82 more. Together, these two categories account for an estimated 60.7% of the customs burden on winter holiday gifts, according to Lending Tree.
“If you want to get the same amount of stuff you had last year, you should expect that you might have to spend a little more this holiday season,” Matt Schultz, chief consumer finance analyst at LendingTree, told USA TODAY.
What is the latest information on customs duties?
Tariffs are an ever-changing subject.
The future of President Donald Trump’s tariffs will be determined on November 5, when the U.S. Supreme Court is scheduled to hear arguments on whether President Trump has the authority to impose tariffs under the International Emergency Powers Act of 1977.
On October 29, President Trump changed some tariffs on China after meeting with Chinese President Xi Jinping. As USA TODAY previously reported, President Trump said he would immediately cut fentanyl tariffs in half from 20%. It will be reduced to 10%. Various other tariffs remain in place, with rates on some Chinese imports ranging from 45% to 47%.
Shoppers will feel the burden of customs duties
If current tariffs had been in place, consumers and retailers would have faced an estimated $40.6 billion in additional costs during the 2024 winter holidays, according to an analysis by Lending Tree. Consumers would have seen an increase of $28.6 billion, while retailers would have absorbed $12 billion, Lending Tree said.
Imported goods are big business, especially during the holidays. Lending Tree estimates that consumers spent $377.7 billion on imported goods during the 2024 winter holidays. Of this, 88.0% of imported goods, or $117.5 billion, was spent on clothing and accessories, and $111.6 billion was spent on electronics.
The additional cost to shoppers “doesn’t make holiday shopping any easier, but I think people are already expecting the holidays to be a little more expensive this year,” Schulz said.
How to budget this holiday season
They are already seeing price increases.
Morning Consult’s monthly survey of 2,200 Americans found that consumers continue to see further price increases due to tariffs in October.
49% of shoppers surveyed said they spend the most on tariff-related price increases at grocery stores, followed by personal care and gasoline (tied for 38%), and medicine and medical supplies in third place at 36%.
41% of U.S. consumers say they are already buying fewer items because of higher costs, and 25% say they would consider doing so. A further 38% said they had already adjusted their budgets to account for rising costs, and 28% said they were considering it.
Schulz suggests saving up a little extra money before the holidays, evaluating credit card sign-up bonuses and comparison shopping.
“Life is expensive in 2025. There are steps people can take to make life a little easier for themselves,” he said.
Betty Lin-Fisher is a consumer reporter for USA TODAY. Contact her at blinfisher@USATODAY.com or follow her at @blinfisher on X, Facebook and Instagram and @blinfisher.bsky.social on Bluesky.. Sign up for our free The Daily Money newsletter, breaking down complex consumer and financial news. Subscribe here.
