As the stock market continues to fluctuate in the wake of President Donald Trump’s so-called “Liberation Day” tariffs, it seems that consumer spending hasn’t taken a major hit—at least not yet. During their quarterly earnings calls, credit card companies expressed a positive outlook on consumer spending, although many are also taking steps to cushion themselves against potential losses in case the economy takes a downturn.
As President Donald Trump’s trade policies have stirred up some turbulence in the stock market, the impact of his so-called “Liberation Day” tariffs hasn’t yet shown up in the quarterly financial reports from the country’s biggest banks, where shifts in consumer spending usually make their first appearance. Earnings reports from credit card companies have remained robust, as consumers have been borrowing, spending, and opening new credit cards at a higher rate than the previous year.
“The consumer is showing resilience and being more selective with their spending,” said Citigroup’s chief financial officer, Mark Mason, during the company’s quarterly earnings call last week. He also pointed out a change in consumer sentiment.
“We’ve noticed a trend where people are prioritizing essentials over travel and entertainment,” Mason added.
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