Context:

The trade war initiated by President Trump has led to a significant shift in European consumer behavior, with many choosing to boycott American goods and services. A 10 percent tariff imposed on U.S. trading partners, including the European Union, has resulted in a growing preference for non-American products, even among households that can afford U.S. goods. Grassroots boycotts and online campaigns in Europe, such as those on Facebook and through apps like BrandSnap, are encouraging this trend. European Central Bank research indicates this may not be a temporary reaction, but rather a long-term shift away from U.S. brands. Companies like Tesla and McDonald's are already observing negative impacts on sales and brand perception in Europe and Canada due to the increased anti-American sentiment.

Dive Deeper:

• President Trump's imposition of a 10 percent tariff on European goods has sparked a backlash among European consumers, leading to a decisive shift away from purchasing American products. This is seen as a long-term structural change rather than a temporary response to tariffs.

• Grassroots movements and online campaigns are mobilizing European consumers to boycott American brands, as seen in popular Facebook groups and through apps like BrandSnap, which suggest European alternatives to U.S. products.

• The European Central Bank's study reveals that even a minimal 5 percent tax on American goods could deter European consumers, indicating a strong preference to avoid U.S. products regardless of cost implications.

• High-profile American brands such as Tesla and McDonald's are facing declining sales and negative brand perception in Europe, with Tesla experiencing an 81 percent decline in sales in Sweden in April.

• The anti-American sentiment is not limited to product boycotts; European consumers are also canceling subscriptions to American streaming services like Netflix, Disney+, and Amazon Prime Video, despite challenges with alternative platforms.

• In response to the U.S. tariffs, the European Union imposed a 25 percent retaliatory duty on many American goods, escalating the trade tensions and contributing to the growing consumer shift away from American products.

• Despite the ongoing trade tensions, U.S. companies continue to monitor international markets closely for further signs of anti-American sentiment, as the impact of Trump's policies on global consumer behavior becomes increasingly apparent.