If your holiday shopping feels more expensive this year, it's not just your imagination. And surprisingly, it might not be retailers jacking up prices either. According to a new report from LendingTree, tariffs are essentially functioning as a $29 billion tax on American holiday shoppers.

Here's how the math works out: LendingTree analyzed what tariffs would have cost shoppers during the 2024 winter holiday season. The total impact? A staggering $40.6 billion increase in holiday gift costs. But here's where it gets interesting—consumers didn't absorb all of that.

Over 70% of the tariff burden, about $28.6 billion, was passed directly to shoppers. That breaks down to an extra $132 per holiday shopper across the country. For context, that's roughly the cost of two or three decent gifts disappearing into tariff costs.

"Anything increasing the cost of holiday shopping creates real challenges for consumers," said Matt Schulz, LendingTree's chief consumer finance analyst. "For most Americans, spending an extra $132 at the holidays is significant. While it may not be earth-shattering, it can have a real impact on many families. It could prompt people to cut back on gift-giving this year or lead to them taking on extra debt. That's a choice no one wants to have to make."

Not all gifts are feeling the pinch equally. Electronics and clothing or accessories are getting hammered, accounting for more than 60% of the additional consumer costs. The reason? American holiday shopping is deeply tied to global supply chains—88% of all clothing and 69% of electronics are imported. When tariffs go up, these categories feel it first and hardest.

Retailers aren't escaping unscathed either. They absorbed approximately 29.5% of the total tariff burden in 2024, eating around $12 billion in costs. That's a significant margin squeeze during what's supposed to be the most profitable time of year.

The Broader Economic Picture

While tariffs are theoretically designed to protect domestic industries, they often create a different reality for consumers—higher prices. The $29 billion holiday tariff bill could trigger a ripple effect throughout the economy. If consumers pull back spending to offset these higher costs, retailers face lower profits, which could ultimately drag on economic growth during a critical quarter.

The uneven distribution of tariff impacts also matters. Sectors heavily dependent on imports, particularly electronics and clothing, may see shifts in consumer behavior. Shoppers might hunt for domestically produced alternatives or simply buy less. Either way, the traditional holiday shopping patterns could be shifting in response to tariff pressures that weren't part of the equation just a few years ago.