Since early 2025, the Trump administration has aggressively escalated tariffs on European imports, ending years of relatively stable transatlantic trade. In response, the EU has threatened sweeping retaliatory tariffs on US goods, fueling fears of a prolonged trade war between two of the world’s largest consumer markets. While both sides have agreed to a 90-day negotiation window, consumers, brands, and retailers are already feeling the pinch from the economic fallout.

This report was compiled with the help of generative AI, using data and analysis original to EMARKETER.

Editor’s note: Tariff updates are happening at a breakneck pace. This content is current as of May 16, 2025, but you can stay up to date with all of our latest coverage on the impact of tariffs here.