83% of U.S. Consumers Plan Spending Cuts Amid Inflation, Tariffs

With inflation rising rapidly and the Trump administration’s high tariffs now taking effect, U.S. consumers are actively cutting back on spending to maintain their standard of living.

According to a CNBC report on May 9, citing a survey by credit management firm Credit Karma, 83% of 2,000 adults surveyed in April said they plan to significantly reduce non-essential spending if their financial situation worsens. Movements like the “No Buy,” “Slow Buy,” and “Low Buy” challenges are quickly spreading across social media platforms.

Social Media Fuels ‘No Buy’ Movement

The No Buy Challenge encourages participants to completely stop purchasing non-essential items such as clothing, books, electronics, and entertainment. The Low Buy approach focuses on minimizing purchases, while Slow Buy recommends a 48-hour waiting period before making any discretionary purchase. These movements have emerged with the goal of reducing overspending and strengthening financial health amid growing recession fears.

This trend is especially prominent among younger generations. A survey by financial software firm H&R Block found that 68% of Gen Z consumers are influenced by saving trends on social media platforms like TikTok, and more than one-third rely on social media for financial management information.

Financial Stress Behind the Shift

The biggest reason these spending restraint trends are spreading is the severe financial pressure on households. Many consumers have depleted their savings and now rely heavily on credit cards to cover living expenses. A recent Gallup survey revealed that 53% of consumers believe their financial situation is deteriorating, and 57% worry about maintaining their current standard of living. Another survey by Bankrate found that 43% of consumers are experiencing mental health issues such as anxiety, stress, insomnia, and depression due to financial problems.

Experts Warn of Long-Term Challenges

As the Trump administration’s high tariffs take effect, the prices of essential goods are projected to rise further. Eugenio Alemán, Chief Economist at asset management firm Raymond James, stated, “Consumers now have to bear the full brunt of rising prices. The only solution is ultimately to reduce spending.”

Financial experts caution that while these short-term saving measures may offer temporary relief, long-term financial stability requires fundamental changes in spending habits. Danny Milan, CEO of Michigan Cornerstone Financial Services, advised, “Don’t worry about how others spend their money. Focus on setting a strict personal budget.” He added that by reviewing spending habits and cutting unnecessary expenses, he personally reduced his monthly spending by over $800.

BY WONHEE CHO [cho.wonhee@koreadaily.com]