How tariffs and the US economy are affecting holiday shopping in 2025

Main Idea: Tariffs, inflation, and a weak economy are making holiday shopping harder in 2025, with President Donald Trump’s import taxes raising costs and forcing small retailers like JaZams to adjust.

Key Points:

• The Ah Louis Store said many imported holiday items became harder to get or more expensive because of tariffs, so it shifted toward higher-margin gifts.
• Shoppers are spending more carefully, often choosing cheaper gift options or buying fewer items than they did last year.
• Toy and electronics prices have risen in part because many products come from China and other Asian countries, and tariff changes created uncertainty for stores.
• Other gift categories, like jewelry and holiday decorations, are also seeing higher costs, though some increases are tied to gold prices and shipping delays as well as tariffs.