Trump’s Tariff Boomerang: Concerns Over U.S. Brand Boycotts

The global backlash to President Trump's tariffs could result in U.S. products facing consumer boycotts abroad

The ongoing trade war ignited by U.S. President Donald Trump’s use of tariffs as a tool for economic protectionism has led to concerns that it may trigger consumer boycotts of American brands. Experts warn that such actions could significantly harm U.S. exports, with consumer sentiments turning negative toward American products in markets overseas.

On February 6, 2025, in an interview with the Financial Times (FT), Takeshi Nishida, the CEO of Japanese beverage giant Suntory Holdings, voiced concerns about the potential consequences of President Trump’s tariffs. Suntory, which markets American whiskey brands like Jim Beam, is already adjusting its business strategy to account for anticipated backlash against U.S. goods. According to Nishida, the company's forecast for 2025 includes a decline in the acceptance of American products in regions outside the U.S., including Europe and other key markets. He emphasized that this downturn would primarily stem from two factors: rising tariffs and increasingly negative consumer sentiment towards U.S. goods.

Suntory has expressed intentions to reduce its exports of American whiskey to countries like the U.S., Mexico, Canada, and the European Union. Nishida mentioned that the company would focus more on selling domestically-produced American whiskey in the U.S., while decreasing its reliance on exports. He also acknowledged that U.S. tariffs on products like tequila from Mexico would likely raise prices for consumers, making it more difficult for Suntory’s tequila business to thrive in the American market.

In addition, Nishida explained that the global expansion of the tariff war could result in significant damage to the U.S. economy. He remains hopeful, however, that President Trump will eventually recalibrate his approach to focus more on domestic inflation control, which would likely force him to consider the broader economic consequences of ongoing trade conflicts.

On February 1, 2025, President Trump announced plans to implement a 25% tariff on goods from Canada and Mexico and an additional 10% tariff on Chinese imports starting February 4. While tariffs against Canada and Mexico were delayed for one month, the tariffs against China were implemented as scheduled. Furthermore, Trump has signaled his intention to impose additional tariffs on the European Union.

The global response to Trump’s tariffs has already begun to manifest in countries like Canada, where some provincial governments have taken measures to boycott U.S. products. In a move to foster economic nationalism, some Canadian liquor stores have started promoting local products over U.S. imports. Canadian Prime Minister Justin Trudeau, in response to Trump’s tariff policies, urged Canadians to support homegrown products and take their vacations within the country, rather than in the U.S.

In a related development, tensions between the U.S. and China have been escalating, leading to growing uncertainty about the future of American businesses in China. According to Bloomberg, McKinsey & Company, a leading American consulting firm, has seen senior partners express doubts about the company’s operations in China, questioning the risks involved in maintaining a presence there. Additionally, a survey conducted by the American Chamber of Commerce in China (AmCham China) revealed that nearly 30% of U.S. businesses in China are either considering relocating or have already begun the process. Many companies predict further deterioration in U.S.-China relations, making the situation increasingly complex for U.S. businesses in the region.

As the tariff dispute continues, the potential for negative consequences to U.S. brands abroad seems increasingly likely, leaving many to question the long-term viability of Trump’s protectionist trade policies. The ripple effects could lead to significant economic shifts, especially for American companies that rely heavily on international markets.