Economic Impact on Gen Z Earlier this year, the United States rolled out a new wave of tariffs, majority of them were aimed at Chinese manufacturing, creating a rise in geopolitical tension. The economic effects were immediate from these changes: Increased costs for consumer goods, slowed imports for supply chains, and heightened volatility in numerous job sectors. For Generation Z, they are just now beginning their careers or juggling a strained amount of student debt. These changes landed them like a punch to the wallet. Gen Z has taken to social media to help break down this economic policy into more digestible pieces of information. TikTok has been one of the key components to help explain how these tariffs are driving up costs to this generation. By using this tool, it has created more awareness for what is happening in the economy and is allowing Gen Z to speak their mind and form their own responses to it. Gen Z’s Adaptive Response Gen Zer’s are turning to more sustainable and low-cost alternative options that try to work around the tariffs. Thrifting, local farmers markets, and small businesses that rely on domestic production and materials are becoming the lifeline of the generation. Not necessarily out of nationalism, but out of the pure necessity of goods and items. Gen Z is prioritizing price and value and becoming more cost-consciousness due to the economic changes. The generation is also putting a back burner on bigger purchases, whether its smartphones or furniture they are trying to repair and maintain rather than buy new. Gen Z has already been known to be ethical shoppers and budget conscientious, but it’s now been rapidly increased due to these changes. Retailer’s Next Step The next step for retailers should be not relying on a single supply chain, especially one that Is heavily affected by the tariffs. Retailers should explore different suppliers that could reduce the risk of cost: Vietnam, India, Eastern Europe, or move fully in the United States. Gen Z values resilience, and if you are trying to show the effort of moving where your supplier is it could lead to more successful business from the generation. Transparency is also a big point that retailers should establish, Gen Z cares where products are coming from, who makes them, and under what conditions. Using ethical supplying of retail is important and being transparent about it is even better. This generation appreciates honesty over perfection, no matter the tariffs. These are just a few points that retailers should consider for the future of not only their business but also the economy. Hopefully with these changes Generation Z’s wallets will start feeling a little less used and belittled.
Premier Flooring Retailer D2 | 2025 47
Made with FlippingBook Digital Publishing Software