A national ad campaign is warning Americans that their holiday budgets are being strained by President Donald Trump’s tariffs, which critics say have sharply increased the cost of food, gifts, and basic goods during the busiest shopping season of the year. The group Tariffs Cost US launched the effort on Monday, releasing a series of ads that tie rising prices to the administration’s tariffs and emphasize the growing financial pressure on families.
The visuals are direct. One advertisement declares, “Tariffs are the Grinch this year.” Another shows a frustrated shopper above the text, “Joy shouldn’t cost extra.” A third states, “Tariffs don’t belong at the table,” aimed at families preparing for Thanksgiving. A 30 second video shows a woman reacting to high checkout totals as clips of Trump discussing his tariffs play in the background.
Alongside the ads, Tariffs Cost US published testimonials from business owners who say the tariffs are driving up their costs. Mary Carroll Dodd, owner of Red Scout Farm in North Carolina, said, “The cost of many of the materials we use for farming has increased this year.” She added that these higher expenses “increase the price of the fresh produce we sell in our community, and it means the food on your Thanksgiving table costs more too.”
Holiday meal costs are rising across the country, and federal data shows that many ingredients are more expensive than they were a year ago. The Associated Press reported that the shrinking turkey population is expected to raise wholesale turkey prices by 44 percent. Although stores are offering discounted or free turkeys to soften the blow, canned goods and other ingredients remain costly. Tariffs on imported steel have contributed to rising prices for canned vegetables and cranberry sauce.
Datasembly, a market research firm that tracks prices at 150,000 U.S. stores, found that an 11 item basket of Thanksgiving staples totaled 58.81 dollars as of Nov. 17. That is 4.1 percent higher than last year, outpacing the 2.7 percent annual increase in food at home measured by the Bureau of Labor Statistics. Polling by Data for Progress shows that 53 percent of Americans say a typical holiday meal will be harder to afford this year.
Specialty food retailers are also feeling the pressure. Mary Chapman Sissle, co owner of Sissle & Daughters Cheesemongers & Grocers in Maine, said, “Everything from cheeses to spices to chocolates are costing more this year.” She added that “Tariffs drive up costs at every stop on the supply chain, and by the holidays those increases are impossible to ignore. It affects every part of our business, and what’s on your holiday shopping list.”
Retail stores preparing for the gift buying season describe similar challenges. Trinita Rhodes, co owner of Beauty Supply Refresh in Missouri, said, “Most of the beauty products our customers count on are imported.” She explained that “Tariffs have raised costs at every step, and by the time products reach our shelves we have no choice but to increase prices. During the holidays, people are buying gifts and stocking up, and these added costs make it harder for us to offer the prices they expect.”
Rachel Lutz, owner of the Peacock Room boutique in Michigan, said tariffs have weighed on her operations heading into the holiday season. “As a small business, we are already feeling the squeeze heading into the holiday season,” she said. “Tariffs have increased the cost of doing business, and we find ourselves working harder for even less.” She highlighted a recent example: “I just placed a 700 dollar jewelry order and was hit with a 100 dollar tariff bill.” Lutz said the trend is contributing to business closures in her community. “It has been heartbreaking to wake up so many mornings and see yet another family-owned business closing in our community because they cannot absorb these costs,” she said. “Some of these businesses have been around for generations, and it’s hard to watch.”
The Tariffs Cost US campaign encourages Americans to contact Congress regarding what it calls tariff driven “sticker shock.” Republican controlled chambers have not taken action to restrict the president’s tariff powers despite legislative proposals. Senator Jacky Rosen of Nevada introduced the No Tariffs on Groceries Act, saying, “Donald Trump lied to the American people when he promised to bring prices down ‘on day one’.” Rosen said, “His reckless tariffs have done the opposite, raising grocery costs and making it harder for hardworking families to put food on the table.” She added that she is “going to do everything in my power to pass this bill to fight against Trump’s harmful trade policies.”
Earlier this month, Trump announced that he was ending tariffs on a range of imported goods ahead of a pending Supreme Court ruling on the legality of his tariffs. The items include beef, cocoa, spices, coffee, tea, bananas, oranges, tomatoes, tropical fruits, fruit juices, and fertilizers. Senator Elizabeth Warren responded by saying, “After months of increasing grocery prices, Donald Trump is finally admitting he was wrong.” She added, “Americans are literally paying the price for Trump’s mistakes.”
Beyond tariffs, the holiday shopping season is being shaped by broader trends in the economy. Analysts note that overall spending appears strong largely because prices remain high, not because Americans are purchasing more. Mastercard projects a 3.6 percent increase in holiday spending this year. Vicki Hyman, communications director at Mastercard, said, “Holiday shopping is far from full swing, but spending shifts are already surfacing.” She added, “Inflation is expected to be a larger contributor to sales growth, as opposed to actual sales volume.”
Bank of America data shows that credit and debit card spending rose 2.4 percent per household in October compared to one year earlier, the strongest month since February 2024. Spending specifically on holiday items was up 5.7 percent. However, the number of transactions has declined slightly since January. Joe Wadford, senior economist at the Bank of America Institute, summarized the findings by saying, “Consumers are clearly spending more and getting less.”
Some purchases earlier in the year may have been driven by attempts to avoid tariff driven price increases. Analysts say Americans bought electronics and jewelry ahead of implementation deadlines, which may reduce holiday season demand in those categories.
The divide between high income and lower income households continues to deepen. The Federal Reserve’s Beige Book shows that low and middle income consumers are reducing their spending as they become more financially constrained. High income consumers are continuing to spend on travel and luxury goods. While lower income credit and debit spending rose only 0.7 percent year over year, wages increased just 1 percent and prices rose 3 percent. Wadford described the pressure many families face: “When your bills are up 300 dollars, but your wages are only up 100 dollars, what are you going to do?”
American Express CEO Stephen Squeri described the landscape as “a bifurcated economy,” a sentiment echoed by analysts who note that high earners benefit from robust stock markets and rising home values while others are stretched thin. The pattern reflects a growing K shaped economy, in which wealthier households can absorb higher prices while others struggle to afford holiday essentials. A Fox News poll this week found that 76 percent of Americans have a negative view of the economy, up from 67 percent in July.
As the season progresses, the combined effects of tariffs, inflation, and economic inequality are shaping holiday spending and deepening public frustration. While headline spending numbers may appear solid, many families are purchasing fewer goods while paying more for them. For small businesses, farmers, and households alike, the cost of celebrating the holidays is increasingly influenced by federal trade policy and the widening gaps within the economy.
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