American Express’ affluent cardholders continue to show no signs of slowing down their spending habits, despite growing concerns about President Donald Trump’s tariff policies. According to CFO Christophe Le Caillec, billed business on AmEx cards rose 6% in the first quarter, with younger customers driving growth in transaction volumes.
The trend has continued into April, with spending showing little decline despite sharp stock market drops. However, some analysts have questioned whether this is due to genuine spending habits or a result of consumers bringing forward purchases due to looming tariffs.
Le Caillec believes that the company’s wealthier customer base is helping it navigate these uncertain times, citing restaurant spend as a strong indicator of cardmember confidence. Restaurant transactions are up 8%, and Le Caillec attributes this to the discretionary nature of dining out, making it less susceptible to tariff uncertainty.
In contrast, airline transactions grew just 3% in April, down from 13% in the fourth quarter. AmEx has maintained its revenue growth guidance despite these challenges, with CFO Le Caillec stating that the company expects 8-10% revenue growth and $15-15.50 per share earnings this year.
The company added a new caveat to its guidance, noting that it is “subject to the Macroeconomic Environment.” This suggests that AmEx is keeping a close eye on the impact of tariffs and other macroeconomic factors on its business.
Source: https://www.cnbc.com/2025/04/17/american-express-cardholders-still-spending-despite-trump-tariffs.html