Europeans began to shun goods from the US because of Trump’s tariffs

Eurozone consumers are changing their behavior amid the risk of new US tariffs: 26% of respondents have switched from American goods to alternatives, and 16% have reduced their overall spending.

Despite significant savings after the pandemic, households have been cautious about large purchases all year due to uncertainty around tariffs, Reuters reports, citing a survey by the European Central Bank (ECB).

At the same time, the reduction almost entirely affected discretionary spending, while spending on essential goods and services remained stable.

According to the ECB, higher household incomes more often lead to a substitution of US goods for others, lower ones – to a reduction in consumption. Consumer decisions are also influenced by financial literacy.

Some respondents have increased inflation expectations, in particular long-term ones. The ECB also warns that the impact of tariffs on prices may not be temporary.

As a result, tariff uncertainty is holding back certain sectors of the eurozone economy, while political risks and expectations of new restrictions are shaping a more cautious consumption pattern, the ECB added.

Tags: EU, USA, duties