ECB: boycott of US goods in Europe becomes a potentially long-term trend
The European Central Bank believes that the boycott of American goods in Europe is becoming a clear and potentially long-term trend. It found that European consumers are willing to choose more expensive goods and services in response to American tariffs.
An ECB study shows that the average substitution rate for American goods is 80 on a scale of 0 to 100, where 100 means full readiness to buy alternatives.
Contrary to typical economic models, consumers with higher incomes are more likely to abandon American goods than consumers with lower incomes.
That is, the main reason for refusing American goods is not price increases due to tariffs.
"This suggests that the consumer reaction may not be just a temporary response to the tariff hike, but is indicative of a possible long-term structural shift in consumer preferences away from American products and brands," the ECB writes.
These results differ from similar surveys conducted in the United States, where consumers reported that they would stockpile goods that could become more expensive as a result of the tariffs.
However, in the Eurozone, it seems that the very fact of tariffs is prompting a significant number of consumers to rethink their purchases. Overall, about 44% of respondents expressed their willingness to shift their spending away from American goods, regardless of the level of tariff, and primarily because they want to change their preferences.
- A YouGov poll in March showed that half of Germans are ready to boycott US goods because of Trump.
- A similar poll in France showed similar results. 57% of French people said they are ready to boycott US goods and services in the coming months, and 62% generally support the idea of a boycott.