Holiday shopping is getting pricier — and tariffs are a big reason why. According to a recent Bank of America report, household spending on holiday items surged 5.7% year-over-year through October, even as the number of credit card transactions at retailers slightly declined.
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Several factors are driving higher prices, but tariffs appear to be a major contributor, especially for two popular gift categories: electronics and jewelry. Here’s a closer look at why, plus how you can still save on holiday purchases.
Electronics See Sharp Price Increases
The report notes that after “Liberation Day” in early April, average spending per electronics transaction jumped nearly 7.5% in just one month. This spike likely reflects both retailers raising prices and consumers “buying ahead” for big-ticket tech items.
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Jewelry Costs Climb With Tariffs and Gold Prices
Jewelry spending also shows a clear tariff impact. When additional tariffs were announced in August, average spending per transaction grew nearly four percentage points in September compared to the previous month, according to the report.
“Jewelry inflation has been driven by both the rising price of gold and tariffs,” said Lorraine Hutchinson, senior specialty retail analyst for Bank of America Global Research.
“India and China produce a significant percentage of the world’s lab-grown diamonds and also export finished jewelry,” she said. “Those countries are carrying higher tariffs versus other Asian exporters.”
How To Avoid Tariff Price Hikes This Holiday Season
You can still save money this holiday season by being mindful of the types of products you buy and being savvy about where you shop.
“Shopping at an off-price retailer is the best way to find bargains this holiday season,” Hutchinson said. “They negotiate with brands to provide their customers with great brands at a discount.”
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This article originally appeared on GOBankingRates.com: Tariffs Are Making These Popular Holiday Gifts More Expensive
