Tariff Impact: How Calls to Boycott American Goods Could Affect Your Business in Oman
NEW DELHI – Prominent U.S. multinationals, including McDonald’s, Coca-Cola, Amazon, and Apple, are facing increasing calls for boycott in India as business leaders and supporters of Prime Minister Narendra Modi fuel anti-American sentiments in response to recent U.S. tariffs.
As the world’s most populous nation, India represents a crucial market for American brands that have rapidly capitalized on the growing number of affluent consumers, many of whom view these international labels as symbols of success. For instance, WhatsApp, owned by Meta, enjoys its largest user base in India, while Domino’s operates more restaurants in the country than any other brand. Products from companies like Pepsi and Coca-Cola dominate retail shelves, and there are often long lines when a new Apple store opens or a Starbucks offers discounts.
Although there are currently no signs of declining sales, a rising movement on social media and in person advocates for purchasing local products over American ones, especially following Donald Trump’s imposition of a 50% tariff on Indian goods, which has stirred concerns among exporters and strained relations between New Delhi and Washington.
None of the companies, including McDonald’s, Coca-Cola, Amazon, or Apple, provided immediate comments in response to Reuters’ inquiries.
Manish Chowdhary, co-founder of India’s Wow Skin Science, shared a video on LinkedIn encouraging support for local farmers and startups, aiming for "Made in India" to gain global recognition. He emphasized the importance of prioritizing local manufacturing, stating, "We have proudly spent on brands that we don’t own, while our makers fight for attention in their own country."
Similarly, Rahm Shastry, CEO of DriveU, a car-on-demand service, expressed on LinkedIn that India should establish its own indigenous alternatives to platforms like Twitter, Google, and YouTube, akin to China’s model. While Indian retail businesses compete fiercely with foreign brands like Starbucks in the domestic market, achieving global recognition remains a challenge. However, Indian IT firms like Tata Consultancy Services (TCS) and Infosys have successfully integrated into the global economy, offering software solutions worldwide.
During a recent gathering in Bengaluru, Modi made a "special appeal" for self-reliance, stating that Indian tech companies are capable of producing goods for global markets but should prioritize domestic needs. He did not reference specific companies.
Despite ongoing anti-American demonstrations, Tesla inaugurated its second showroom in New Delhi on Monday, with attendance from officials from the Indian commerce ministry and the U.S. embassy.
The Swadeshi Jagran Manch, associated with Modi’s Bharatiya Janata Party, organized small public rallies across India on Sunday to promote the boycott of American brands. Co-convener Ashwani Mahajan told Reuters, "People are now looking at Indian products. It will take some time to fructify. This is a call for nationalism, patriotism." He also shared a chart listing Indian alternatives to bath soaps, toothpaste, and beverages that consumers could consider over foreign brands.
On social media, one campaign features a graphic titled "Boycott foreign food chains," showcasing logos of McDonald’s and other restaurant brands.
In Uttar Pradesh, Rajat Gupta, 37, dining at a McDonald’s in Lucknow, expressed indifference toward the tariff protests, simply enjoying a 49-rupee ($0.55) coffee he deemed a good value. "Tariffs are a matter of diplomacy, and my McPuff, coffee should not be dragged into it," he remarked.
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As anti-American sentiment in India rises, Omani businesses must navigate potential shifts in global consumer behavior. The emphasis on local products presents opportunities for domestic brands to capture market share both locally and regionally, but risks also loom with the possible decline of established American brands. Smart investors should consider diversifying their portfolios to include homegrown innovations, leveraging the growing nationalistic movement while remaining vigilant of global market dynamics.
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