Democrats are more than twice as likely to delay or cancel major purchases than Republicans due to Trump’s tariffs, a new survey says.
Democrats reported significantly higher rates of canceling (36%) and delaying (43%) home purchases than Republicans (15% and 21%). This data comes from a survey of 1,000 people conducted by Redfin – an online real estate marketplace and brokerage.
Meanwhile, the number of Americans who feel that “now is a bad time to buy a car” has increased by more than 10 percentage points in only two months.
A partisan reaction with broader risks
While this spending pullback may seem partisan, the economic effects won’t stay that way. If a large share of the population slows down major purchases, it can lower consumer confidence and ripple through the broader economy.
Part of the divide stems from how Americans view the tariffs themselves. A recent Pew Research poll highlights a clear partisan split: 9 out of 10 Democrats and Democratic-leaning individuals disapprove of Trump’s tariffs, while about 7 out of 10 Republicans and “Republican-leaning individuals” approve.
This political split influences how comfortable people feel about making big financial decisions. Democrats’ disapproval likely contributes to their economic anxiety, leading to more cautious spending behavior, as reflected in the Redfin survey.
Republicans’ approval, on the other hand, suggests greater confidence in the policy’s potential benefits – or at least less fear of negative economic consequences – making them less likely to change their plans.
Markets are already feeling the pullback
Early signs of cooling are showing up in the housing market. Redfin data shows pending home sales down about 1% year-over-year, mortgage applications falling 5% weekly, and real estate agents noticing more buyers stepping back.
“Tariffs, stock-market volatility and recession jitters are weighing heavily on consumer confidence, sending many would-be buyers to the sidelines,” says Redfin Economics Lead Chen Zhao. “Consumers are tightening their belts because they are rightly nervous about their job security and the prospect of paying more for everyday expenses.”
The auto market faces similar challenges. A new HarrisX survey finds that 56% of Americans now believe it’s a bad time to buy a car, up sharply from 46% two months earlier. Rising prices, anticipated to jump nearly 15% due to tariffs, paired with high interest rates, could temporarily freeze the U.S. auto market.
“If people are pulling back from major purchases like cars, what does that say about broader economic confidence?” asks HarrisX CEO Dritan Nesho. “The road ahead for the auto industry – and the U.S. economy as a whole – is increasingly uncertain.”
