LONDON, May 6 (Reuters) - Growing numbers of retailers

and consumer brands are shifting their focus to Europe and other

markets from the United States, as they expect U.S. tariffs to

spark price hikes that will drive American consumer demand down.

European online fashion retailer Zalando, which

sells logistics and software services to other retailers, said

on Tuesday it was in talks with prospective new clients looking

to expand in the European market.

"We see brands and retailers really having a larger focus on

Europe as a way to also generate additional demand if it gets

more difficult to do this in the U.S.," Zalando co-CEO David

Schroeder said.

U.S. President Donald Trump's administration has slapped a

blanket 10% tariff on all imports into the country, and 145%

tariffs on goods made in China.

German clothing brand Hugo Boss has rerouted

China-manufactured products to other markets instead of the

U.S., and said there was a "notable deterioration" in U.S.

consumer spending in the first quarter due to growing

uncertainty over the economy.

"We are currently taking a rather cautious stance regarding

consumer behavior in the U.S.," its CEO Daniel Grieder said on

Tuesday as the company reported lower revenues compared to last

year.

The reaction highlights the impact of Trump's tariffs on the

flow of consumer products around the globe, forcing companies to

shake up long-established patterns of manufacturing and sales.

Key will be how U.S. consumers react to price increases as a

result of tariffs.

Barbie maker Mattel ( MAT ) on Monday pulled its annual

guidance, saying there was too much uncertainty over consumer

spending, and that tariffs would force it to raise prices in the

U.S.

For its card game UNO, Mattel ( MAT ) said it was shipping more

China-manufactured games internationally to avoid U.S. tariffs

on Chinese goods, while increasing production of UNO in India to

serve U.S. customers.

The CEO of Italian fashion group OTB, which owns brands

including Diesel, Jil Sander and Maison Margiela, said on Monday

it would have to increase its prices in the U.S. by 8-9% to

offset the impact of tariffs.

While European brands previously proudly advertised their

sales to U.S. consumers, world leaders in spending on clothes

and shoes, they have pivoted to trying to reassure investors

they are not overly exposed.

The U.S. accounts for around 20% of German sportswear brand

Adidas' business, CEO Bjorn Gulden said last week in

a results call, adding that "for 80% of our business these

tariffs have no impact".

"We believe we can currently gain more momentum in the other

markets," said Gulden. "We can kind of finance the losses... on

margin in the U.S. by overachieving in the other markets."

More focus on Europe will however increase competition among

retailers, and may make it harder for brands to win over new

customers. The tariffs have also triggered concerns in the

region that low-value goods could be dumped on the market.

Cut-price online retailers Shein and Temu, whose main market

is the U.S., have increased their advertising spend in Europe as

they seek to mitigate the impact of the U.S. hiking tariffs on

Chinese goods and removing a duty-free exemption for low-value

e-commerce packages from China.