American brands like Coke and Jim Beam are paying the price abroad for Trump's trade war

Published: Sunday, May 11, 2025 at 10:05 am

American Brands Face Backlash Abroad Amidst Trade Tensions

American brands like Coca-Cola and Jim Beam are experiencing a decline in popularity overseas, according to recent reports. This shift in consumer behavior is linked to President Trump's trade war and the resulting anti-American sentiment in some international markets.

A Morning Consult survey revealed that consumers globally are less likely to purchase major US brands compared to a few months ago. This trend suggests that the association with the United States is becoming a liability for some companies.

Coca-Cola, for example, saw a dip in customer certainty to buy its products in Mexico, dropping from 40% in January to 28% in February before rebounding to 34% in April. This was partly fueled by false social media claims. Similarly, Suntory Holdings, the owner of Jim Beam and Maker's Mark, anticipates challenges for its American whiskey brands.

While some companies are feeling the heat, others are weathering the storm. McDonald's noted an increase in anti-American sentiment, particularly in Canada and Northern Europe, but didn't see a direct sales hit. Luxury brands like Coach and Kate Spade, under Tapestry, and Levi Strauss & Co. haven't reported any sales slowdowns, citing their strong local presence and consumer loyalty.

The situation highlights the complex impact of trade wars. As tariffs and political tensions rise, consumers may opt for local or non-US brands, potentially reshaping the global market landscape.

BNN's Perspective: The situation underscores the interconnectedness of global markets and the potential for political actions to have significant economic consequences. While some brands are resilient due to their established presence and consumer loyalty, others are clearly feeling the pinch. This situation highlights the importance of companies adapting to changing consumer sentiment and navigating the complexities of international trade.

Keywords: American brands, trade war, Coca-Cola, Jim Beam, consumer sentiment, international markets, tariffs, anti-American sentiment, Morning Consult, McDonald's, Suntory Holdings, Coach, Kate Spade, Levi Strauss & Co., global economy, consumer behavior, brand perception, Mexico, Canada, Northern Europe, sales decline, US brands, President Trump, international business

Full Coverage