European consumers are prepared to actively move away from US products and services as a result of President Donald Trump’s trade war, according to research by the European Central Bank.
Asked how they’d react to different potential levels of tariffs — and equivalent retaliation by the European Union — respondents in a recent survey revealed they’re “very willing” to find non-US alternatives, the ECB said Wednesday in a blog post.
The researchers even found those views were largely independent from prices, which are normally assumed to drive behavioral changes to trade levies.
“Consumers’ reactions may not just be a temporary response to tariff increases, but instead signal a possible long-term structural shift in consumer preferences away from US products and brands,” the blog said. “It seems that the mere presence of a tariff would prompt a large share of consumers to reconsider what they buy.”
The findings come amid a worldwide backlash against the US tariffs announced on April 2. In Canada, growing tensions with Trump’s administration have not only kept liberal Prime Minister Mark Carney in power, there’s also a nationwide campaign to buy domestic products instead of alternatives from its southern neighbor.
In Europe, consumers have been exchanging information online about the best substitutes for American products. Tesla Inc. has already seen sales in the region slump 43% in the first two months of the year, despite the overall market for electric cars growing by more than 30%.
The ECB pointed out that results of similar surveys are very different in the US, where consumers “reported that they would stockpile goods expected to increase in price due to potential tariffs.”
Most EU products currently face a 10% tariff in the US during a 90-day window that Trump has allowed for negotiations. The bloc has held off on counter-tariffs against the US during those talks, though it’s been preparing some measures in case they fail.
This story was originally featured on Fortune.com
Source link
