Key Takeaways: American consumers feel they are bearing the economic burden of tariffs.As prices increase and Americans see no increase in income, cutting back and “trading down” are on the rise.L.E.K. Consulting suggests that successful brands will shift toward value-based pricing, aligning prices with what consumers actually perceive as valuable.A survey of 2,000 American adults has come to some striking conclusions about the opinion of the American public regarding who is bearing the financial burden of the Trump administration’s tariffs. Consumers have reacted by cutting back on spending or choosing cheaper items, as most see no future improvements to their income.The survey, conducted by strategy consulting firm L.E.K. Consulting, found that:68% of consumers believe they themselves are paying for tariffs.Consumers believe they're already paying more than what they think is acceptable across multiple categories, from household goods to apparel, footwear, and accessories. Only about a quarter expect their financial situation and discretionary spending ability to improve over the next 12 months (26%).As prices rise overall, 74% of Americans foresee a reduction in their spending on apparel, shoes, and accessories. In addition, 63% of American consumers anticipate a decrease in beauty spending; 46% of Americans are preparing for a decrease in spending on personal care products as well, according to the survey.