{"id":10449,"date":"2025-07-06T04:38:29","date_gmt":"2025-07-06T02:38:29","guid":{"rendered":"https:\/\/oxfordwisefinance.com\/blog\/?p=10449"},"modified":"2025-07-06T04:38:37","modified_gmt":"2025-07-06T02:38:37","slug":"e-commerce-faces-sharp-slowdown-due-to-tariff-uncertainties","status":"publish","type":"post","link":"https:\/\/oxfordwisefinance.com\/blog\/e-commerce-faces-sharp-slowdown-due-to-tariff-uncertainties\/","title":{"rendered":"E-commerce Faces Sharp Slowdown Due to Tariff Uncertainties"},"content":{"rendered":"\n<div>\n<div class=\"article-disclosure-banner-wrapper\">\n<p>When you click on the products and services listed below, <b>Money<\/b> may earn a commission. The opinions expressed are solely our own, <br class=\"disclosure-break\" \/>but our comprehensive research and compensation influence the visibility and placement of these offerings. Discover more about our monetization practices.<\/p>\n<\/p>\n<\/div>\n<\/div>\n<div id=\"article-body\" data-tracking-zone=\"body\">\n<div class=\"padded\">\n<p>The landscape of <b>e-commerce<\/b> is experiencing its most significant slowdown in over a decade, driven primarily by <b>tariffs<\/b> on imported goods and ongoing <b>economic uncertainty<\/b>. This assessment comes from a recent report by a renowned management consulting firm, indicating a seismic shift in consumer behavior.<\/p>\n<p>For the very first time since the launch of this survey in 2012, consumers have indicated that their <b>online purchases<\/b> have decreased across virtually all product categories, with the exception of <b>groceries<\/b>, which have remained stable. This finding was highlighted in the <b>2025 trends report<\/b> released on Tuesday by <b>AlixPartners<\/b>, based on feedback from 1,000 consumers across the United States.<\/p>\n<p>The most notable drops in <b>online shopping<\/b> activity were observed in high-ticket items such as <b>furniture<\/b>, <b>home furnishings<\/b> like rugs and window treatments, large <b>electronics<\/b>, and <b>sporting goods<\/b>. The percentage of consumers reporting recent purchases of these items has seen double-digit declines since the last survey conducted in July 2024, emphasizing a significant change in consumer spending habits.<\/p>\n<div class=\"ca-pcu-inline  has-ad-icon    money-embed-ca\" data-pcu-render-at-=\"2025-07-05T13:44:29Z\" id=\"ap39733-ww\">\n<div id=\"ap39733-ww-indicator\">\n<div id=\"ap39733-ww-indicator-wrapper\"><span id=\"ap39733-ww-text\">Ads by Money. We may be compensated if you click this ad.<\/span><span id=\"ap39733-ww-label\">Ad<\/span><span id=\"ap39733-ww-icon\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" alt=\"Ads by Money disclaimer\" height=\"16\" width=\"16\" src=\"https:\/\/i0.wp.com\/s3.money.com\/prd\/image\/image\/15240\/163e573e-202a-466a-b8b8-93da65db2b13.png?resize=16%2C16&#038;ssl=1\" \/><\/span><\/div>\n<\/div>\n<\/div>\n<ul>\n<li><b>Cosmetics<\/b>: 34% purchased in the past 12 months (down from 44% in last year&#8217;s survey)<\/li>\n<li><b>Office\/home-office supplies<\/b>: 24% (down from 37%)<\/li>\n<li><b>Sporting goods<\/b>: 18% (down from 30%)<\/li>\n<li><b>Furniture<\/b>: 18% (down from 28%)<\/li>\n<li><b><a href=\"https:\/\/oxfordwisefinance.com\/blog\/home-inventory-essential-for-every-homeowner\/\">Home furnishing<\/a><\/b>: 18% (down from 28%)<\/li>\n<li><b>Large electronics<\/b>: 15% (down from 25%)<\/li>\n<\/ul>\n<p>The report attributes these changes primarily to President <b>Donald Trump&#8217;s tariff policies<\/b>. &#8220;There is a clear connection between heightened consumer awareness of tariffs and their buying choices,&#8221; said Chris Considine, a partner in <b>AlixPartners\u2019 retail practice<\/b>, in a press statement.<\/p>\n<p>Despite the Trump administration&#8217;s attempts to pause certain tariffs while negotiating with trading partners, a blanket tariff of 10% remains in effect, alongside increased reciprocal tariffs on specific countries and various other levies. According to a recent report by <b>Maersk<\/b>, a leading Danish shipping company, importers faced an effective tariff rate of 21% as of May 11, rising significantly from 5% in November.<\/p>\n<p>Consumers engaging in <b>online shopping<\/b> are already noticing how these tariffs are affecting the prices of items in their carts, particularly for products imported from <b>China<\/b> and other Asian countries that are subjected to higher tariffs.<\/p>\n<p>Interestingly, <b>Gen Z shoppers<\/b> are the demographic most inclined to purchase from overseas e-retailers such as <b>Shein<\/b> and <b><a href=\"https:\/\/oxfordwisefinance.com\/blog\/cfps-prepare-budgets-amid-trumps-tariffs-8-insights\/\">Temu<\/a><\/b>, which are known for their low prices but often come with lengthy and uncertain shipping times. Notably, these Chinese e-retailers have experienced a significant decline in U.S. sales and web traffic following the implementation of stringent new tariffs and the closure of a loophole that previously benefited low-priced goods, according to the findings in the <b>AlixPartners report<\/b>.<\/p>\n<p>Overall, 34% of surveyed consumers report that they are responding to tariffs by delaying their purchases, hoping to navigate through the current climate of uncertain pricing. Conversely, 28% have accelerated their purchase timelines in an effort to avoid impending levies, based on survey data collected in May and early June.<\/p>\n<p>The outlook provided by <b>AlixPartners<\/b> regarding the future of <b>online shopping<\/b> is generally pessimistic. &#8220;While there may be some stakeholders in the <b><a href=\"https:\/\/oxfordwisefinance.com\/blog\/amazon-stock-prediction-set-to-soar-in-5-years\/\">e-commerce ecosystem<\/a><\/b> who are experiencing positive outcomes, the data in this report does not reflect that sentiment,&#8221; the firm stated.<\/p>\n<div class=\"ca-pcu-inline content-width has-ad-icon    money-embed-ca\" data-pcu-render-at-=\"2025-07-06T02:25:48Z\" id=\"ap77593-ww\">\n<div id=\"ap77593-ww-indicator\">\n<div id=\"ap77593-ww-indicator-wrapper\"><span id=\"ap77593-ww-text\">Ads by Money. We may be compensated if you click this ad.<\/span><span id=\"ap77593-ww-label\">Ad<\/span><span id=\"ap77593-ww-icon\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" alt=\"Ads by Money disclaimer\" height=\"16\" width=\"16\" src=\"https:\/\/i0.wp.com\/s3.money.com\/prd\/image\/image\/15240\/163e573e-202a-466a-b8b8-93da65db2b13.png?resize=16%2C16&#038;ssl=1\" \/><\/span><\/div>\n<\/div>\n<\/div>\n<h2>Explore More Valuable Insights from Money:<\/h2>\n<p>Discover the Best Credit Cards for Your Financial Needs<\/p>\n<p>Understand the Earnings Required for Americans to Afford a Typical House<\/p>\n<p>We Consulted AI for Stock Recommendations in July\u2014Here\u2019s What It Suggested<\/p>\n<\/p>\n<\/div>\n<\/div>\n\n<p><a href=\"https:\/\/money.com\/ecommerce-slowdown-tariffs-consumer-spending-decline\/?xid=moneyrss\" rel=\"nofollow\">Access the Source Link for More Information<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you click on the products and services listed below, Money may [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10450,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","pagelayer_contact_templates":[],"_pagelayer_content":"","iawp_total_views":2,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[142,471],"tags":[50],"class_list":["post-10449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-business","category-tax-policy","tag-news","col-md-12"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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