Tariffs and the 2024 Holiday Shopping Season: Retailers Remain Confident

The holiday shopping season is kicking into full gear, and this year tariffs are again shaping the economics of the checkout line. After months of shifting trade rules, merchants appear ready to navigate the turbulence without derailing demand.

Retailers Lead in Tariff Confidence

PYMNTS Intelligence data, reflecting the views of 60 firms across industries including retail, shows 80% of companies are “very or extremely confident” they can adapt to tariff-related supply-chain disruptions, while 20% are “somewhat confident.” Among goods-sector firms – which include many retailers – confidence is even higher: 85.2% are very or extremely confident, and 14.8% are somewhat confident. Services follow at 82.6%, and tech at 60%.

Even companies expecting a strong tariff impact remain upbeat. 85.1% of “high-impact” firms describe themselves as very confident, and 80% of “medium-impact” firms echo that view. The outlier is the “low-impact” group, where 100% are only “somewhat confident.”

these results align with PYMNTS Intelligence’s September report, “Tariff Turbulence Splits the Middle Market as Confidence Rises,” which found that 29% of middle-market firms have increased prices, 21% have renegotiated supplier terms, and every goods firm surveyed has already taken steps to mitigate tariff impacts.

Key Takeaways

• High Retail Confidence: A significant majority (80%) of firms are confident in their ability to adapt to tariff disruptions.
• Goods sector Leads: Confidence is highest among goods-sector firms, particularly retailers (85.2%).
• Impact Doesn’t Deter confidence: Even firms expecting a strong tariff impact largely express high confidence.
• Proactive Measures: Companies are already taking action, including price increases and supplier renegotiations.

FAQ

Q: What is driving this confidence among retailers?

A: Retailers have likely learned from previous tariff implementations and have developed strategies to diversify supply chains, renegotiate contracts, and absorb some of the increased costs.

Q: What steps are companies taking to mitigate tariff impacts?

A: According to PYMNTS Intelligence data, companies are increasing prices, renegotiating supplier terms, and actively seeking alternative sourcing options.

Q: Why is the “low-impact” group less confident?

A: Firms perceiving a low impact from tariffs may simply be less prepared or have fewer resources dedicated to addressing potential disruptions.

Publication Date: 2025/10/09 15:48:53