Shopping on holidays is always fun and an exciting time spent by many. However, due to the surge in demand during peak holiday seasons, the price of goods increases rapidly, which at times causes discomfort to many buyers. As the holiday season is already approaching, American buyers are facing a complex economic picture.
Amid this confusion, US President Donald Trump has highlighted a “25% cost cut” on Thanksgiving dinners, as many consumers are feeling the pinch from higher prices at major retailers like Amazon and Target.
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The '25% cut' claim
The 25% figure announced by President Trump is based on a specific Thanksgiving meal basket offered by Walmart. However, Walmart’s pre-packaged holiday meal prices indicate that the administration’s policies have been successful in reducing food prices compared to last year.
On Wednesday, Trump posted on X that “Walmart just announced that prices for a Thanksgiving dinner are now down 25% since under Sleepy/Crooked Joe Biden, in 2024, calling it proof of Republican-led affordability.”
Retail prices continue to rise
DataWeave, a research firm, analysed that the prices on Amazon have increased an average of 12.8% since the year started. During the same period, Target’s prices increased by 5.5%, and Walmart’s by 5.3%.
The hike in prices is caused by several factors, including persistent inflation and the impact of the new US tariffs on imported goods. These tariffs affect third-party sellers on platforms like Amazon, who often pass the higher costs directly to consumers.
Consumers plan to cut back
According to Deloitte reports, a 2025 holiday survey shows that 77% of shoppers expect to pay higher prices this year, and a different report by PwC indicated that shoppers plan to spend 5% to 10% less in total this holiday season, the first meaningful decline in holiday spending since 2020.
This year, the primary strategy of shoppers is hunting for value by trading down to cheaper brands, reducing the number of gifts, and aggressively seeking deals.
