Key takeaways

• Americans expect to spend over $10,000 an average for trips and vacations in 2025, according to Empower research — 30% say tariffs are impacting their travel plans.
• Thousands of imported summer essentials are expected to see markups, including sunscreen (+34%), swimwear (+58%), and beach towels (+39%).
• The number of people taking vacation time off work in June dropped to its lowest level since the pandemic, according to the U.S. Bureau of Labor Statistics.

There’s a “tax” on fun in the sun this year, as summer essentials face price hikes amid tariff pressures.

As Americans gear up for summer getaways, rising tariffs and tightening wallets are reshaping how — and how much — they plan to spend. Empower research reveals that one in three Americans plan to cut back on travel spending in 2025, embracing “staycations” and domestic travel over international trips.

Read more: Road trips race ahead in popularity as people stretch travel dollars

Still, for many, travel remains a priority — nearly half say the memories made on vacation are priceless, showing that meaningful experiences often outweigh the price tag.  On average, Americans expect to spend approximately $10,600 on trips and vacations in 2025.

Here comes the sun (and the tariffs)

But those staying stateside won’t avoid rising costs. According to analysis from the U.S. Chamber of Commerce, a so-called “tariff tax” will hit a range of summer essentials from sunscreen to swimwear and beach towels to beach toys.¹

Tariff impacts on summer essentials

With beach day basics set to increase as much as 68%, some Americans have already started stockpiling summer favorites. Korean sunscreen devotees — who regard the formulations as superior to the U.S. versions — are ordering their UV protection in droves.²

And it’s not just sunscreen. Retailers are reporting an uptick in early summer purchases, as consumers rush to beat the tariff clock. At the end of June, 20% of shoppers reported planning to stockpile everyday goods before tariffs hit, while others are delaying non-essentials or opting for lower-cost alternatives.³

Retailers are adapting at the same pace. Some are accelerating imports of inventory to beat upcoming tariffs, while others lean into pre-tariff promotions — in July, Amazon extended its Prime Day deals to four days, with sellers clearing stock ahead of rising costs.^4,5

Renewed tariff threats — including the possibility of 50% duties on goods from Brazil and Canada beginning August 1 — have stirred up fresh waves of inflation fears.⁶ Still, consumer spending picked up in June, with retail sales rising 0.6% after two consecutive months of spending declines: A 0.1% pullback in April and a 0.9% slowdown in May, according to the U.S. Census Bureau.⁷

PTO on pause

Meanwhile, fewer Americans are taking time off work for summer vacations. The number of people taking vacation time off work in June dropped 10% year-over-year — the lowest level since the pandemic, according to the U.S. Labor Department.⁸ Prices for hotels and airfares also fell — down 3.6% and 0.1% respectively from May to June — as the travel industry seeks to pull Americans away from their desks and back into planes, hotels, and vacation mode.⁹

Will discounted rates jumpstart the stalled summer travel season? A tariff hike at the end of the administration’s 90-day pause on new duties could squeeze consumers just as peak summer spending kicks in.

Read more: FTC “junk fees” rule: What it means for travel, rentals and event tickets