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The sands of President Trump\u2019s 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.<\/p>\n
And that uncertainty is still not at an end. Three<\/strong> 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<\/strong> groups: The original 10%<\/strong> base tariff will remain in place for most, but approximately 40 <\/strong>countries will now face a 15%<\/strong> base rate, and some will be subject to even higher \u201creciprocal tariffs,\u201d depending on their trade deficit with the U.S. and individual negotiations with the White House.<\/p>\n 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.<\/p>\n Prices have already begun increasing and businesses are feeling the strain of attempting to source for critical sales periods in this fluid landscape.<\/p>\n Rising costs driven by tariffs are reshaping how global consumers live, shop and engage with brands, according to a new study released today by\u00a0UserTesting. The survey of 4,000<\/strong> consumers across the U.S., UK and Australia found that:<\/p>\n The majority of consumers in all three <\/strong>countries have already seen tariff-related price hikes: \u00a072%\u00a0of U.S. consumers,\u00a068%\u00a0of Brits and 55%\u00a0of Australians report they have noticed tariff-related increases.<\/strong> As a result, nearly half of U.S. and UK consumers who noticed these hikes said they\u2019ve already switched away from their favorite brands<\/strong> to find better value.\u00a0<\/p>\n As tariffs push prices upward, many consumers also are reassessing where their products come from \u2014 bringing new awareness and, in some cases, a preference for domestically made goods: 54%<\/strong> of U.S. respondents, 61%<\/strong> of U.K. respondents and 64%<\/strong> 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%<\/strong> across all three regions) show a preference for domestic brands, with only a small fraction preferring international alternatives. This suggests that tariffs aren\u2019t just shaping wallets but may be actively transforming how consumers think about product origin and brand loyalty.<\/strong><\/p>\n Across all three regions surveyed, consumers report a growing sense of emotional strain<\/strong> \u2014 from stress and anger to sadness and overwhelm \u2014 as rising costs disrupt not just their budgets but their sense of control.<\/p>\n In the U.S., the emotional weight appears to be hitting hardest: over one-third<\/strong> of Americans say tariffs leave them feeling stressed (37%<\/strong>), with nearly a quarter <\/strong>feeling overwhelmed (23%<\/strong>) when hearing about economic changes tied to trade policy.\u00a0<\/p>\n As economic uncertainty stretches on, brands are now navigating an increasingly emotionally charged marketplace, where trust, tone and transparency matter as much as price.<\/strong> But while many brands have raised prices, most consumers aren\u2019t automatically assigning blame \u2014 yet. In fact, 54%<\/strong> (U.S.), 65%<\/strong> (Australia) and 55%<\/strong> (U.K.) say their perception of brands hasn\u2019t changed. The deciding factor? Honesty. 72% of Americans, 82% of Australians and 80% of Brits<\/strong> say that transparent communication about pricing changes is essential to maintaining their trust.<\/strong><\/p>\n \u201cWhether tariffs remain or not, it\u2019s clear they\u2019ve already reshaped consumer habits,\u201d said Bobby Meixner, VP of Solution Marketing at UserTesting in a statement. \u201cConsumers understand that price hikes may be out of a company\u2019s control. What they\u2019re looking for is honest, upfront communication \u2014 and they\u2019re making purchase decisions based on it.\u201d<\/p>\n Businesses are just as concerned as consumers, not least because shifting timelines and tariff rates have made it difficult to optimize their annual sourcing efforts. After already wreaking havoc on orders for back-to-school and holiday, the impact of the ongoing uncertainty is now shifting into spring ordering, reports CNBC<\/em>.<\/p>\n Some retailers are pushing ahead with spring orders despite tariff fears, but the industry at large continues to issue warnings that all this back-and-forth, not to mention the tariffs themselves, will lead to higher prices, fewer products on shelves and job losses.<\/strong><\/p>\n Additionally, 76% of companies say that they have already experienced profit losses due to tariff impacts<\/strong>, according to a study from price management platform Enable. These losses are largely due to a gap between the speed of tariff changes and businesses\u2019 ability to respond, the study found: While 84%<\/strong> of companies plan to increase prices to offset tariff impacts, 59%<\/strong> admit it takes weeks or months to implement price changes.<\/p>\n And while raising prices remains many businesses\u2019 primary response to tariffs, 52%<\/strong> said they also will reduce costs elsewhere, and 46%<\/strong> are considering scaling back or withdrawing from high-tariff markets entirely. But the fear of damaging customer relationships while attempting to maintain margins<\/strong> in this environment adds another layer of complexity, with 85%<\/strong> saying they fear customer sensitivity to tariff-related price changes and 94%<\/strong> of businesses concerned about negatively impacting relationships due to pricing changes.<\/p>\n The National Retail Federation has called out the danger of tariffs to U.S. businesses since the policy was first announced in April, and doubled down on that criticism last week in a statement encouraging the administration \u201cto negotiate binding trade agreements that truly open markets by lowering tariffs, not raising them.\u201d<\/p>\n \u201cThese 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,\u201d said David French, EVP of Government Relations at NRF in the statement. \u201cRetailers 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.\u201d<\/p>\n The National Foreign Trade Council (NFTC) has joined the chorus, following the results from its recent survey, which showed that businesses across sectors are delaying growth, reducing operations and reassessing their investments due to the uncertainty created by current U.S. trade policy.<\/p>\n \u201cVolatility in trade policy, and tariffs in particular, are hurting rather than helping U.S. companies,\u201d said John Pickel, VP for International Supply Chain Policy at NFTC in a statement. \u201cU.S.-based firms create American jobs, supply our domestic economy and foster international competitiveness by sourcing and selling in the global economy.\u00a0Injecting uncertainty into this process increases costs, thwarts innovation and threatens to bring back shortages of the products we all use.<\/p>\n \u201cU.S. policymakers should adopt a more structured approach,\u201d Pickel continued. \u201cThe administration should articulate clear, phased objectives and define measurable outcomes for trading partners, exempt products not commercially available domestically, and establish \u2018off ramps\u2019 to reassess tariffs based on success metrics or unintended impacts, which will help enable American businesses\u2019 success.\u201d\u00a0<\/p>\n<\/p><\/div>\n42% of Consumers Report Buying Fewer Products<\/strong><\/h2>\n
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For Consumers, Tariff Impact is not Just Economic; it\u2019s Emotional<\/strong><\/h2>\n
Tariffs Prompt Profit Losses Among 76% of Businesses<\/strong><\/h2>\n
Trade Bodies Call for End to Tariff Uncertainty<\/strong><\/h2>\n