Trump’s Tariffs Fuel Rejection and Lower Consumption of U.S. Products in Europe

Europeans are altering their consumption patterns in response to tariffs imposed by the United States, resulting in 26% removing U.S. products from their shopping lists and 16% reducing overall spending.

“In response to concerns related to tariffs, consumers are significantly modifying their spending habits,” the European Central Bank (ECB) summarized on Monday in its latest survey conducted among consumers across the continent.

The issuing institution reported that high-income households showed a greater tendency to reject U.S. products, while lower-income families cut consumption due to tariff-related uncertainty. The decline focused exclusively on discretionary items rather than essential goods.

A majority of respondents indicated that they consider trade duties to have an inflationary effect. A smaller proportion believe they harm economic growth or their personal finances.

The ECB observed that consumers who view tariffs as a factor driving up prices raised their inflation expectations by about two-tenths since January for the one-year horizon, by 0.13 points at the three-year horizon, and by 0.06 at the five-year horizon.

Similarly, those who see tariffs as harmful to growth projected GDP growth four-tenths lower than they forecast at the beginning of 2025. For the rest of respondents, Donald Trump’s tariffs are expected to shave two-tenths from growth.

“By altering expectations for inflation and growth and triggering changes in spending behavior, tariffs have introduced a degree of uncertainty that is influencing both household decisions and, potentially, overall economic developments,” the ECB warned.