44% of Europeans are turning away from U.S. brands

New U.S. tariffs on European imports are prompting European consumers to shift away from American products—not just due to price increases, but because of changing preferences. ECB survey data from March 2025 shows that nearly 44% of euro area consumers are willing to reduce their U.S. product purchases, with preference, not price, being the main driver. Surprisingly, higher-income households are even more likely to switch, suggesting a broader and potentially lasting shift in consumer behavior away from U.S. brands amid growing geopolitical tensions.

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The newly imposed U.S. tariffs on European imports are prompting a significant shift in consumer behavior across the euro area. While conventional economic theory suggests that higher prices lead consumers to seek cheaper alternatives, the latest data from the ECB’s Consumer Expectations Survey (CES) reveals a broader pattern. Nearly 44% of surveyed Europeans said they are willing to reduce their purchases of U.S. products regardless of tariff levels, with many citing a shift in preference rather than price sensitivity as the main reason. In fact, the median substitution score—a measure of willingness to switch away from U.S. goods—was 80 out of 100, and even higher (95) among those whose motivation was preference-based. This indicates that tariffs are not just triggering short-term responses, but potentially fueling a lasting change in how consumers perceive and select brands.

Interestingly, this preference-driven behavior is especially pronounced among higher-income households. Contrary to typical expectations—where lower-income consumers are usually more price-sensitive—the survey found that substitution willingness actually increases with income. Wealthier consumers, who could easily absorb higher prices, appear more motivated by values or political considerations than by cost. The survey also shows that those who spend more on discretionary items like entertainment or tech are more likely to shift away from U.S. products than those focused on essentials like food and energy. This suggests that lifestyle factors and ethical considerations may be playing a growing role in purchasing decisions, particularly in the context of rising geopolitical tensions and trade conflicts.

Looking forward, the data point to a potential long-term structural change in transatlantic consumer patterns. While American consumers tend to react to tariffs by stockpiling goods, Europeans appear more inclined to rethink their overall loyalty to U.S. brands. As trade disputes evolve, particularly amid political friction and retaliatory tariffs from the EU, this shift could reshape global supply chains and market strategies. The findings challenge traditional models of consumer behavior, highlighting how preference, identity, and politics are increasingly influencing economic choices in today’s interconnected world.