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Most Americans already expect higher prices this holiday season. Between rising costs on everyday goods and uncertainty about where the economy is headed, many shoppers are rethinking how they spend, save and give this year.
“Many categories of typical holiday gifts have already been impacted by tariffs and rising costs. 80% of the market for children’s toys is imported, and major players such as Mattel and Hasbro have already announced price increases,” Joe Adamski, supply chain expert and senior director at ProcureAbility, wrote in an email. “About 90% of consumer electronics are sourced internationally, and are particularly vulnerable to tariff actions.”
And if you want to save money, you may need to make some changes. Here are three ways your holiday shopping habits may need to shift this year amid the Trump economy, according to experts.
Shop Early
Marty Bauer, e-commerce and retail expert at Omnisend, noted that their research indicates a third of Americans have already noticed higher prices due to tariffs and plan to buy gifts earlier this year, specifically in late October and early November.
“Nearly one in five will begin even before that. We saw something similar back in 2020, when people shopped early to avoid stockouts,” Bauer wrote in an email. “Expect a similar reaction this season — people won’t wait for Black Friday, and many will likely cut back on how much they spend altogether.”
Control How You Spend and Borrow
Erica Sandberg, consumer finance expert at CardRates.com, said price hikes will likely be across the board, but you can still have an amazing holiday without overspending or getting into expensive debt.
Sandberg recommended looking at your income and deciding how much you’re willing to spend on all the extras.
“Tally everything from increased travel to gifts to meals and decorating,” Sandberg explained. “For example, maybe your regular expenses cost $2,000 a month, but in December you want to add another $800. Consider how you will manage it.” This could be pulling from savings, getting a bonus at work or bringing in extra cash to cover these expenses without borrowing.
And if you want to borrow, Sandberg said to plan ahead. “You may want to get a 0% APR credit card soon,” she recommended. “They can be perfect for the holiday season because you’ll have a period of time without any finance fees being added, and some of these accounts have valuable sign-up bonuses that can lower the net cost of your holiday expenses.”
Don’t want to sign up for a new card? You can also use an existing card that has an impressive rewards rate, she added. “When you know we will pay off the bill within 30 days, you’re definitely benefiting with those additional points, miles or cash back,” Sandberg noted.
Consider Alternative Gift Ideas
The types of gifts shoppers buy also might need to change, at least in part due to rising prices.
“We expect to see consumers opting to purchase gift cards instead of physical gifts,” Adamski wrote. In fact, according to Mastercard, “When prices rise, shoppers may turn to gift cards, allowing them to navigate rising prices while allowing their loved ones to choose what they want.”
“We’ll also see an emphasis on experiences, like tickets to a cooking class, airline tickets or an outdoor excursion. Another great option for consumers this year is buying pre-owned items,” Adamski explained.
Food is another gift option. “Food-focused gift baskets that include U.S.-made items should not see price increases,” he said.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.