President Donald Trump may have spoiled Christmas for American families with his erratic tariff strategy.
A new Wells Fargo report released Wednesday projects higher prices, fewer choices, and scant holiday promotions.
Facing import taxes of 10 to 50 percent under the president’s global tariffs, U.S. companies are confronted with the uphill task of controlling costs while limiting price increases for consumers.
Grabbing popular seasonal essentials like apparel, furniture, and décor, will inevitably cost shoppers more, according to Wells Fargo’s 2025 Supply Chain Report, as these items are largely imported.
Shoppers should also anticipate finding fewer promotions and reduced big-ticket rebates on items like appliances, Jeremy Jansen, head of global originations for Wells Fargo Supply Chain, told reporters, according to Axios.
In addition, the variety of products to choose from will shrink, as retailers narrow assortments, according to Adam Davis, managing director for Wells Fargo Retail Finance.
“We don’t need five red vases. What we can have is three red vases,” Davis said, Axios reported.
The remarks echo Trump’s comments in May, when he tried to downplay the impact of his trade wars on American consumers by saying, “Well, maybe the children will have two dolls instead of 30 dolls. And maybe the two dolls will cost a couple bucks more than they would normally.”
The president hopes his tariffs will boost domestic manufacturing and push consumers to buy American. However, Wells Fargo’s report notes that goods financed from foreign suppliers increased 13 percent through April 2025 from the same period in 2024, as U.S. companies rushed to get ahead of his tariffs.
Retailers slowed orders after the president rolled out his “Liberation Day” tariffs before hitting pause amid market turmoil.
Now, with tariffs in full effect, companies are navigating the taxes by hiking prices methodically, targeting only certain items, according to the report.
“You can’t just mark everything up 5 to 10 percent, you have to be very methodical on certain items and how you’re approaching it,” Davis said, according to Axios.
Other firms are trying to keep prices steady by reducing spending elsewhere or freezing hiring, the report found.
Earlier this month, Trump lashed out at Goldman Sachs CEO David Solomon after the investment bank released a report estimating that companies have absorbed 64 percent of tariffs, compared to consumers’ 22 percent. The report warned that consumers could ultimately end up eating 67 percent of the cost.
The Daily Beast has reached out to the White House for comment.
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