How adversely will President Trump’s newly announced tariffs on foreign goods imported into the United States affect U.S. products in foreign markets?
That question has been discussed, debated, dismissed, imagined, reimagined and contemplated for at least the past month — and probably much longer.
The intent here is not to resolve that question. Rather, it is an attempt, perhaps a clumsy one, to provide some insight into the initial response from those same foreign markets — and foreign retailers — that have been so critical for U.S. suppliers for so very long.
The recent data has been extracted from a New York Times article, published last month, that attempted to gauge initial retailer reactions to Mr. Trump’s proposals. The data is, admittedly, random, and little attempt has been to organize or categorize it. Still, certain trends emerge — at least for those readers willing to speculate as to the ultimate resolution of this critical happening.
The story beings with some personal observations. For openers, a school principal in Denmark finds that the Spanish raisins he now snacks on are less tasty than the Sun-Maid variety he previously enjoyed, but alas … While he’s on the subject, he bemoans the fact that there’s no perfect substitute for the Heinz tomato soup currently residing in his pantry. Moreover, he already misses Pepsi Max.
From here, the Times piece concludes that, as long as Mr. Trump pursues policies that the principal in question believes put Europe’s economy and security at risk, he intends to boycott these and other U.S. products. “We are acting on our frustrations,” he notes, speaking for a group of 90,000 dedicated to boycotting American goods.
From here the drip becomes a torrent, according to the Times, which notes that “groups dedicated to boycotting U.S. goods … have popped up in several European countries.”
Examples abound. In Sweden, a Facebook group with over 80,000 members has users asking for suggestions on buying non-American laptops, dog food and toothpaste. Members of a French group praise European laundry detergents and smartphone apps, and question whether Cognac or Scotch whisky is the better alternative to bourbon.
Among the brands discussed by various groups, with an eye toward replacing them, are Oreos, Heinz ketchup and Estée Lauder night serum. Nor are retail stores neglected. Loblaw, Canada’s largest supermarket retailer, has begun identifying U.S.-made products with a “T” symbol. In Denmark, retailers including Netto, Bilka and Forex have added stars to the prices of European goods to indicate a hoped-for consumer preference.
Behind all this activity is a movement appropriately labeled “Anti-American sentiment.” So it is that Empire, Canada’s second-largest food retailer, announced that its sales of U.S. products have been “dropping rapidly.” And Lindt, the Swiss chocolate maker, has announced that it plans to start selling chocolate made in Europe rather than in the U.S.
To conclude, the Times’ article revealed that consumers have canceled subscriptions to Netflix, Disney+, Amazon Prime Video, along with Google, Microsoft Office and other streaming services.
That’s pretty much it. The question is, is the Times story a one-off or just the tip of the iceberg? To end this overlong diatribe, the Times article concludes by revealing that a 57-year-old janitor has stockpiled 12 bottles of Tabasco hot sauce because it’s the one thing he just can’t live without.
While there’s life …
