Nearly 70% of U.S. consumers anticipate rising costs for everyday goods as trade policies under former President Donald Trump continue to fuel economic uncertainty, according to a Harris Poll commissioned by Bloomberg News. The findings highlight growing apprehension about inflation and recession risks, with 56% of respondents stating their household finances would be stronger without tariffs.
Retailers Adjust as Spending Slows
Major U.S. retailers like Walmart and Target are raising prices and revising sales forecasts amid declining consumer spending. Analysts note that Asian exporters, particularly in the Chinese mainland and Southeast Asia, could face ripple effects if U.S. demand weakens further. 'Global supply chains remain deeply interconnected,' said economist Li Wei of the Asia Development Institute. 'Shifts in U.S. consumption patterns will influence production decisions from Vietnam to India.'
Belt-Tightening Trends Hit Leisure
Over 60% of Americans report cutting back on non-essential spending, with dining out and entertainment among the first casualties. Summer travel plans are also shrinking, potentially impacting Asia's tourism sector. Countries like Thailand and Japan, which saw record U.S. visitors in 2023, are monitoring booking trends ahead of peak season.
Broader Implications for Asia
While the poll focuses on U.S. households, its findings underscore vulnerabilities in export-driven Asian economies. Business leaders are urging diversification, with ASEAN nations accelerating regional trade agreements to reduce reliance on Western markets. Meanwhile, cross-strait tech firms in Taiwan and the Chinese mainland remain cautiously optimistic about sustained demand for electronics components.
