Canadians Alter Holiday Spending Plans Over Tariff Fears

Canadians are adjusting their holiday shopping strategies this year in response to concerns about tariffs and the rising cost of living. A recent survey conducted by the Bank of Montreal (BMO) reveals that 61 percent of respondents have modified their spending plans for the holiday season, with many opting to reduce their expenditures.

The poll, released on November 14, 2023, indicates that a significant portion of the population is feeling the financial strain. Approximately 41 percent of Canadians reported intentions to cut back on their holiday spending. This trend highlights the growing apprehension surrounding various economic factors, including inflation and potential price increases due to tariffs.

In a proactive measure, nearly a quarter of those surveyed—specifically 25 percent—have begun their holiday shopping earlier than usual. This strategy aims to avoid anticipated price hikes linked to tariffs, allowing consumers to secure gifts and festive items at current prices.

Consumer Sentiment and Economic Impact

The findings from the BMO poll reflect a broader sentiment among Canadians regarding their financial well-being. Many are prioritizing value and affordability as they navigate the holiday shopping season. The rising cost of living, driven by inflationary pressures, has compelled consumers to rethink their spending habits.

According to the survey, the impact of tariffs is particularly concerning for households already facing increased costs in other areas. The adjustment in spending behavior underscores the interconnectedness of global trade policies and local purchasing decisions. As Canadians prepare for the holidays, they are making choices that reflect their economic realities.

Overall, the BMO poll illustrates a cautious approach to holiday shopping, with many Canadians opting to be more strategic in their purchasing decisions. The ongoing economic challenges are prompting consumers to seek ways to minimize expenses while still participating in holiday traditions.

As the holiday season approaches, it remains to be seen how these changes will influence retail performance and consumer satisfaction. The data from the BMO survey serves as a crucial indicator of the current economic climate and its effects on consumer behavior during this festive period.