Up to 54% of Europeans say new U.S. tariffs will leave them worse off - survey

Published 02/05/2025, 12:06
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com -- More than half of European households believe recently announced U.S. tariffs will negatively impact their finances, according to the latest dbDataInsights household survey conducted by Deutsche Bank (ETR:DBKGn).

“In Europe between 37% and 54% of respondents think the recently announced tariff policies will make them financially worse off,” Deutsche Bank said. 

In comparison, 40% of U.S. respondents felt they would be worse off. However, more Americans were optimistic about potential benefits, with “a larger proportion of U.S. respondents believe they will be better off (23%) versus in Europe (4%-10%),” the bank noted.

The new tariff-related sentiment questions were introduced in April following the U.S. announcement of new import duties on April 2. 

Responses were collected from April 17 to April 28 across Germany, France, Italy, Spain, the United Kingdom (TADAWUL:4280), and the United States.

While U.S. respondents were “more bullish on the U.S. economy,” the majority across all countries expected tariffs to have a broadly negative global effect. 

European respondents “are a little more optimistic than U.S. respondents about countries being able to make deals with the U.S.”

Concerns over inflation were said to be prevalent. “In all countries we survey, households expect tariffs to lead to higher inflation,” Deutsche Bank said. 

U.S. households appeared more willing to react, with “a greater propensity to cut back on general spending and delay purchases due [to] the tariffs.” 

The U.K. also showed signs of spending sensitivity, with British respondents “a little more responsive to changing their spending patterns” than other major European nations.

Despite these concerns, “concerns about recession in the next 12 months are low across all the countries we survey,” the report concluded.

 

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