American Express’ wealthy cardholders are mostly untouched by tariff jitters

American Express’ wealthy cardholders are continuing to spend freely, with younger customers driving transaction growth in the first quarter, according to Chief Financial Officer Christophe Le Caille. The company reported a 6% increase in billed business on AmEx cards during the period, or 7% when accounting for the leap year impact. This trend of increased spending from late last year has carried over into 2025, Le Caille noted. Despite recent stock market declines due to concerns over President Trump’s tariff policies, these spending trends have persisted into April.

The company’s strong performance in the first quarter, exceeding expectations for profit, suggests that its affluent customer base may shield it from worries about tariffs and inflation. In contrast, Synchrony Financial, which provides store cards for numerous retailers, has cautioned about a slowdown in spending. AmEx’s growth in the quarter was primarily driven by younger cardholders, with millennials and Gen Z members increasing their spending by 14%.

Le Caille acknowledged the challenge of determining whether customers are accelerating purchases due to impending tariffs, potentially inflating transaction volumes artificially. However, he suggested that some small businesses might be stocking up on inventory to mitigate potential cost increases from tariffs.

Despite concerns about tariffs and economic conditions, AmEx remains optimistic about its performance, maintaining revenue growth and earnings guidance for the year. The company highlighted a notable increase in restaurant spending, indicating strong confidence among cardmembers. While airline transactions showed a modest growth rate, the company remains undeterred by tariff uncertainties, unlike other sectors that have revised their earnings forecasts.