European consumers turn away from American goods amidst tariffs
The European Central Bank highlights on its official blog that boycotting US goods in Europe is becoming a distinct and potentially long-lasting trend, with consumers determined to give up American products, reports "The New York Times."
Since President Donald Trump decided to impose tariffs on the United States' trading partners, European consumers seem to be discouraged from buying imports from the USA, notes the American daily.
Even McDonald’s has noticed a drop in the number of customers, and Tesla, owned by Trump’s advisor and important campaign sponsor Elon Musk, is being boycotted and suffering significant losses, according to reports.
In the first quarter, McDonald’s global revenue, which includes franchise fee collections, fell by 3% compared to the previous year, down to around $6 billion (€5.3 billion). Net income also dropped by 3%, to approximately $1.9 billion (€1.68 billion), reported "NYT" at the beginning of May.
Sales of Heinz ketchup and Lays crisps are declining, and in Sweden, Tesla owners have started placing stickers on their cars with the word "Shame," notes "NYT."
Consumers are willing to pay more
The Danes have begun organising campaigns on Facebook to boycott American goods. In March, the local Netto grocery discount chain started marking European products with an asterisk. This is a nod to customers who boycott US goods. Previously, they highlighted that it was not easy to find information about the manufacturer during shopping.
A Danish group on Facebook urging the boycott of US goods has 95,000 members, who advise each other on what is produced in the USA.
Reversing the growing disillusionment among Europeans toward a long-standing ally won't be easy. According to a study by the European Central Bank (ECB), even if 5-percent tariffs are imposed on American goods sold in Europe, many Europeans would still be inclined to disregard them, The "New York Times" reports.
The ECB determined that European consumers are willing to choose more expensive goods and services to retaliate against Trump's tariffs, adds the newspaper.
