Hugh Cameron
Anumber of companies, including many of the country's most quintessentially American brands, have warned that growing anti-Americanism as a result of President Donald Trump's tariffs could end up hurting their success overseas.
Experts believe that the trend, if it translates into a broad-based shift in consumer behavior, could prove to be a significant headwind for the companies while taking a significant toll on the broader U.S. economy.
Why It Matters
Anti-Americanism has been on the rise globally, driven largely by the trade policies of the current administration that impacted countries' views as a critical threat to their exports and international trade more generally.
Calls to boycott the American economy have gained traction in Canada since early this year—also sparked by Trump's "51st state" remarks—and have already impacted tourism to the U.S. and the sale of American products. These have recently spread to India as a result of the 50 percent duties placed on its goods, with lawmakers and activists urging less dependence on American multinationals and a greater emphasis on economic self-sufficiency.
What To Know
According to business intelligence firm Morning Consult, Trump's tariff announcements in early April coincided with a "staggering upswing" in global anti-American sentiment, which it said had already resulted in "steep drops in purchasing consideration" for some U.S. companies overseas, "suggesting that worsening views of America are rapidly taking a toll on some brands' health."
In July, ahead of the reimposition of Trump's "reciprocal" tariffs, it said that "anti-Americanism" could pose a significant risk to brands given the combination of potential price impacts and "sharply negative sentiment toward the United States" on consumer shopping habits.
No comments:
Post a Comment