Stat: Consumers shift loyalty to brands that absorb tariff costs

Global – As new tariffs drive up import costs, a wave of price sensitivity is forcing retail leaders to rethink their strategies. 

A survey by AI-driven platform First Insight reveals that 79% of shoppers would remain loyal to brands that absorb tariff-related costs, yet 83% of retail executives still plan to raise prices.

As consumers brace for impact, 30% say any price increase would alter their spending, while 73% would be frustrated by higher prices. 

If costs rise, three-quarters of respondents said they are ready to ditch their favourite brands for more cost-effective alternatives. As explored in our New Codes of Value report, widespread dissatisfaction has created a catalyst for people to re-evaluate their consumption choices.

According to the survey, the categories shoppers would be willing to cut back on first are electronics/tech (50%), apparel/fashion (53%) and home goods/furniture (54%).