This story, which has been edited for Small Business Xchange, was originally published on our sister website, Retail TouchPoints.
The sands of President Trump’s shifting global trade policy seem to be beginning to settle, but in the meantime, research shows that businesses and consumers have been scarred by months of changing timelines and persistent uncertainty.
And that uncertainty is still not at an end. Three months after first announcing its initial tariff policy on April 2, the White House has issued yet another modification. As of Aug. 1, impacted countries have now been split into two groups: The original 10% base tariff will remain in place for most, but approximately 40 countries will now face a 15% base rate, and some will be subject to even higher “reciprocal tariffs,” depending on their trade deficit with the U.S. and individual negotiations with the White House.
Firm deals are now in place with the EU, Japan, UK, Indonesia, the Philippines, South Korea, Vietnam, and others, but negotiations are still ongoing with major U.S. trade partners including China and Canada. And in the midst of all it, consumers and businesses must still go about their daily lives.
Prices have already begun increasing and businesses are feeling the strain of attempting to source for critical sales periods in this fluid landscape.
42% of Consumers Report Buying Fewer Products
Rising costs driven by tariffs are reshaping how global consumers live, shop, and engage with brands, according to a new study released by UserTesting. The survey of 4,000 consumers across the U.S., UK, and Australia found that:
- 42% are buying fewer products overall;
- 27% are switching to generic or store-brand alternatives;
- 18% are shopping secondhand more often;
- 20% are traveling less; and
- 39% said tariffs caused them to reconsider their summer travel plans entirely.
The majority of consumers in all three countries have already seen tariff-related price hikes: 72% of U.S. consumers, 68% of Brits, and 55% of Australians report they have noticed tariff-related increases. As a result, nearly half of U.S. and UK consumers who noticed these hikes said they’ve already switched away from their favorite brands to find better value.
As tariffs push prices upward, many consumers also are reassessing where their products come from — bringing new awareness and, in some cases, a preference for domestically made goods: 54% of U.S. respondents, 61% of U.K. respondents and 64% of Australians reported they would be more likely to buy domestically manufactured products due to tariffs. Day to day, a majority of global respondents (53% across all three regions) show a preference for domestic brands, with only a small fraction preferring international alternatives. This suggests that tariffs aren’t just shaping wallets but may be actively transforming how consumers think about product origin and brand loyalty.
For Consumers, Tariff Impact Is Not Just Economic — It’s Emotional
Across all three regions surveyed, consumers report a growing sense of emotional strain — from stress and anger to sadness and overwhelm — as rising costs disrupt not just their budgets but their sense of control.
In the U.S., the emotional weight appears to be hitting hardest: Over one-third of Americans say tariffs leave them feeling stressed (37%), with nearly a quarter feeling overwhelmed (23%) when hearing about economic changes tied to trade policy.
As economic uncertainty stretches on, brands are now navigating an increasingly emotionally charged marketplace, where trust, tone, and transparency matter as much as price. But while many brands have raised prices, most consumers aren’t automatically assigning blame — yet. In fact, 54% (U.S.), 65% (Australia) and 55% (U.K.) say their perception of brands hasn’t changed. The deciding factor? Honesty. 72% of Americans, 82% of Australians and 80% of Brits say that transparent communication about pricing changes is essential to maintaining their trust.
“Whether tariffs remain or not, it’s clear they’ve already reshaped consumer habits,” said Bobby Meixner, VP of solution marketing at UserTesting, in a statement. “Consumers understand that price hikes may be out of a company’s control. What they’re looking for is honest, upfront communication — and they’re making purchase decisions based on it.”
Tariffs Prompt Profit Losses Among 76% of Businesses
According to a study from price management platform Enable, 76% of businesses say that they have already experienced profit losses due to tariff impacts. These losses are largely due to a gap between the speed of tariff changes and businesses’ ability to respond, the study found. While 84% of businesses plan to increase prices to offset tariff impacts, 59% admit it takes weeks or months to implement price changes.
And while raising prices remains many businesses’ primary response to tariffs, 52% said they also will reduce costs elsewhere. Nearly half (46%) are considering scaling back or withdrawing from high-tariff markets entirely. But the fear of damaging customer relationships while attempting to maintain margins in this environment adds another layer of complexity, with 85% saying they fear customer sensitivity to tariff-related price changes and 94% of businesses concerned about negatively impacting relationships due to pricing changes.
Trade Bodies Call for End to Tariff Uncertainty
The National Retail Federation (NRF) has called out the danger of tariffs to U.S. businesses since the policy was first announced in April. The NRF doubled down on that criticism in an Aug. 1 statement encouraging the administration “to negotiate binding trade agreements that truly open markets by lowering tariffs, not raising them.”
“These higher tariffs will hurt Americans, including consumers, retailers and their employees, and manufacturers, because the direct result of tariffs will be higher prices, decreased hiring, fewer capital expenditures and slower innovation,” said David French, EVP of government relations at the NRF, in the statement. “Retailers have been able to hold the line on pricing so far, but the new tariffs will impact merchandise in the coming weeks. We have heard directly from small retailers who are concerned about their ability to stay in business in the face of these unsustainable tariff rates.”
The National Restaurant Association joined the chorus, warning that these new tariffs will raise the price of necessary ingredients and lead to higher prices for popular menu items like coffee and hamburgers.
“With restaurants operating on very tight margins, many operators may have no choice but to increase menu prices, something they are reluctant to do, because we know Americans may have to make the choice to dine out less frequently if prices go up,” said Michelle Korsmo, president and CEO at the National Restaurant Association, in a statement. “Fewer people dining out jeopardizes an industry that supports millions of jobs and local economies.
“We strongly advocate for exempting food and beverage items from tariff negotiations, and ensuring USMCA-compliant goods remain exempt during ongoing talks with Mexico and Canada,” Korsmo continued. “These measures will help safeguard small businesses, preserve jobs, and keep dining out affordable for families.”
