‘Made in USA’ Struggles to Justify Price Premiums

‘Made in USA’ Loses Value as Price Sensitivity Rises

A new survey by The Conference Board shows U.S. shoppers are less swayed by country-of-origin labels than they were three years ago, even when the label is “Made in USA.” With inflation and tariffs shaping household budgets, value now often outweighs national loyalty in purchase decisions.

Inflation and Tariffs Reshape Consumer Priorities

According to The Conference Board’s June 2025 survey of 3,000 U.S. consumers, the share of buyers who say a product’s origin makes them more likely to repurchase it has fallen across most demographics since 2022. For U.S.-made goods, the drop is steep, an 18% decline overall, bringing positive sentiment down to about half of respondents. The pullback is sharpest among Americans over 55 and White consumers, historically the most reliable supporters of domestic brands.

Researchers link this change to persistent price concerns. U.S. production typically carries higher labor and compliance costs, while tariffs on imports can also push retail prices higher. For some shoppers, a “Made in USA” label signals a price premium rather than a patriotic choice.

Preferences are also shifting for other manufacturing nations. Canada remains the most favorably viewed among America’s top import partners, followed by Mexico, with China at the bottom despite its share in everyday goods. Countries that have gained production as companies diversify from China, such as Vietnam and Bangladesh, still face low consumer favorability, suggesting familiarity and brand positioning matter as much as cost.

Demographics and Income Levels Alter the Origin Equation

Support for domestic production is not falling uniformly. Among consumers under 35, negative perceptions of “Made in USA” have eased, hinting at renewed interest tied to sustainability, local job creation, and supply chain resilience. This shift follows pandemic-era disruptions that made the risks of far-flung sourcing more visible.

Income plays a complex role. Households earning up to $125,000 are more likely to value products from countries associated with high-end goods, such as France, Germany, and Japan. Above that income level, interest in country of origin declines, possibly due to greater product knowledge, broader travel exposure, or budget distribution in multi-person households. At the other end, lower-cost production countries like India, Vietnam, and Bangladesh tend to resonate with lower- and middle-income buyers focused on affordability, though they lag far behind in overall appeal.

Even with weakening pull, “Made in USA” claims are expected to remain prominent in marketing. The Federal Trade Commission has stepped up enforcement on inaccurate labeling, and July 2025 was designated “Made in USA Month” to increase awareness of compliance requirements.

Why This Shift May Signal a Marketing Pivot

If country-of-origin cues are losing their sway, brands will need to reassess how much weight they give to national provenance in messaging. Rather than relying on flags and origin statements to justify higher prices, companies may find greater traction by pairing these claims with evidence of durability, sustainability, or ethical production, attributes that hold cross-border appeal. Recent retail case studies show that when these qualities are communicated clearly, the premium attached to domestic goods is easier for price-sensitive consumers to accept, even in a high-inflation climate.

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