iStock.com/winhorse
May 6, 2025
Will Anti-American Sentiment Hurt US Brands?
McDonald’s raised eyebrows within the investment community last week after noting that it’s seeing growing negative sentiment among some international consumers toward America and American brands.
The comments come as investors and Wall Street analysts have been closely monitoring consumer-oriented companies with a significant presence in international markets for any signs of anti-American sentiment related to President Donald Trump’s policies, particularly over tariffs.
International sales produce nearly 60% of McDonald’s revenues.
Chris Kempczinski, McDonald’s CEO, said on the fast-food chain’s first-quarter analyst call that an internal survey revealed that consumers in various markets are “going to be cutting back their purchase of American brands, and we’ve seen an uptick in anti-American sentiment.” He added: “Call it eight- to a 10-point increase in anti-American sentiment.”
He said the American backlash was “most pronounced” in Northern Europe and Canada, with no noticeable change in Latin America and Asia.
Nonetheless, the growing anti-American attitude has not spilled over to the McDonald’s brand, Kempczinski said, noting its international restaurants are largely operated by local franchisees who “live and work and support the communities they do business in.”
Other issues playing roles in grassroots movements calling for boycotts of American goods in Canada and across Europe include Trump’s threats to assert control over Canada, Greenland, and the Panama Canal, as well as U.S. actions around the wars in Ukraine and Gaza.
Coca-Cola attributed some weakness in Mexico in the first quarter to U.S. immigration and trade policies, with CEO James Quincey on an analyst call stressing the importance of calling out that beverages are manufactured locally, in addition to their “affordability.”
Morning Consult Intelligence data showed America’s reputation has worsened in 38 out of 42 nations polled around the world between Jan. 1 and March 17, declining on average by 20 points. Particularly severe drops were seen among some of America’s longest-standing allies, such as Canada (44 percentage points), Mexico (32 percentage points), and South Korea (38 percentage points), as well as European nations such as Sweden (47 percentage points), France (33 percentage points), Norway (36 percentage points), and the UK (31 percentage points).
An Ipsos survey of 22,715 adults in international regions taken between March 21 and April 4 similarly found that those saying the U.S. will have a positive influence on world affairs has fallen in 26 out of 29 countries, with notable declines in Canada and Europe.
The surveys don’t fully reflect the reaction to Trump’s “Liberation Day” tariff plan announced on April 2 that eventually caused China to face U.S. import duties as high as 145%.
Forrester analyst Sucharita Kodali told Yahoo! Finance that the biggest risk for U.S. brands may be backlash from Chinese consumers. She said, “I don’t know the future of American companies in China.”
Goldman Sachs’ analysts in an April 15 note predicted that the combination of a pullback in foreign travel and consumer boycotts tied to rising anti-U.S. sentiment could cost the U.S. economy as much as $90 billion this year.
Discussion Questions
Will the current anti-American sentiment tied to the trade war and other actions by the Trump administration likely be a short-lived event or have a more lasting impact on the opportunity for U.S. brands in international markets?
What, if anything, can U.S. brands with a major international presence do?
Poll
Loading …BrainTrust
Gene Detroyer
Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.
Mohammad Ahsen
Co-Founder, Customer Maps
Mark Ryski
Founder, CEO & Author, HeadCount Corporation
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To an extent, yes. It is already happening in some countries, albeit at the margins. That said, I don’t think it is a widespread boycott in most geographies. The truth is that while many people do not favor American policies, they’re not using this as an excuse to shun all American brands. And, as ever, great products with a strong desirability factor helps to ward off this kind of problem.
Am also taking the long view on this one with what we know so far, and how the world has historically viewed American brands, products.
I compare what is happening to the US reputation to that of Germany and Japan after World War II. It took the rest of the world about 30 years (give or take) to trust them again.
I remember when I bought my first German product…it was a Krupps coffee maker sometime in the late 80’s. The floodgates opened and all my cars have been Japanese or German, my electronics are mostly Japanese, etc. etc.
I’m not sure we realize yet how much damage has been done
This self-inflicted wound will be around for a long time, I’ll predict. Watch things get much darker when there are product shortages and the White House responds.
It’s hard to say…actually, it’s easy to say, it’s hard to know: there has, of course, always been a certain amount of anti-American sentiment; what’s different here is that this time many, if not in fact most, Americans agree with what’s behind that sentiment. There’s been a lot of
blathercomment that people will separate the U.S. from it’s (current) government, but there are limits to how far that can go…as Coolidge famously remarked “They hired the monkey, didn’t they?”The situation will remain uncertain for the duration of this administration. Any hope of this being short-lived is unrealistic, and if anything, it will likely get worse. It’s not only the economic impact of the tariffs themselves, but also in the ‘smash mouth’ way the administration is carrying this out. The full effect of the reputational damage to ‘America’ as a brand and the sales of U.S. brands in international markets has yet to be fully felt. And while some consumers in these markets will be willing to look past the politics and continue to support these terrific U.S. brands, many others will not. Once lost, it will be very difficult to regain this brand loyalty.
Agreed, Mark. Cancelled travel to the US this summer (from Canada and elsewhere) is just the start.
It is important for U.S. brands to emphasize their commitment to local communities and build strong local partnerships. Transparent communication can also be used to clear up misconceptions and highlight their contributions and values.
International markets can also benefit from investing in social responsibility initiatives. By actively engaging in social responsibility initiatives, brands can demonstrate their genuine concern for societal issues, which can enhance their reputation and foster consumer trust.
This approach not only differentiates them from competitors but also attracts socially-conscious consumers who prioritize ethical practices. As a result, brands can build a loyal customer base and improve their overall public image.
U.S. brands can increase customer loyalty abroad by tailoring their products and services to local preferences and cultural nuances. Building trust and satisfaction can also be achieved by providing fast, efficient customer service and offering localized support.
In addition, repeat customers can be rewarded with special offers or exclusive experiences through loyalty programs.
Changing international consumer sentiment tied to global political actions can impact how brands are perceived abroad. This anti-American feeling might stick around for a bit due to political issues, but generally, such feelings tend to calm down over time.
To be more accepted locally, U.S. brands should truly act like a local business, hiring people from the area and making products and services suited to local tastes & culture. Get involved in local events and support community causes.
I was just in Berlin and Hamburg. I’m on the train to Copenhagen (Denmark, YIKES). Cab drivers want to talk about Trump, not in a nice way. The issue seems deeper than just not liking the guy. The administration’s values are clearly the antithesis of German values.
Notably, we have all heard about the nosedive in Tesla sales in Germany. But, I understand the deals on used Teslas are incredible. McDs are not busy, but I have no benchmark to measure against.
Canadian tourism travel is a prime example, with the drop expected to be about 70%. Do you think the administration realizes tourism is an export relative to the trade balance? The trade deficit with Canada will increase by over $20 billion. Mexico provides the second-largest tourist group after Canada. How many Mexicans will risk visiting the U.S.?
The sentiment is clearly negative, but with a new administration that reflects the values of the various countries, it will likely turn around. The real problem is that these countries/companies reset their trade relationships, and those will become permanent. The U.S. major jet fighter sales to France and Sweden. How do you get that back?
It would be hubris to suggest that the last 110 days haven’t had an impact on Brand USA. After spending a few days in Palm Springs and seeing “We Love Canada” flags on every light pole and store window, the impact of soft boycotts on many aspects of US business is clearly real, and American companies are right to be concerned.
The key to mitigating this unusual time is to continue to deliver quality, branded products and experiences. Stressing the brand’s commitment to local communities, as mentioned here, is also important. It’s also helpful to stay away from any political endorsements, opinions, or anything that looks like compliance or resistance to the current administration. Excellent service, high-quality products, openness to everyone, and a commitment to local communities are important for retailers interested in demonstrating a long-term vision for engagement with international customers is critical.
Anti American Sentiment has, in the past at least, been more tilted to anti American jealousy. Yes, the “Trump trade war” is hurting us, at least for now. But in the end, product quality (and price of course amongst other things) will prevail, or should prevail when it comes to various consumer “moments of truth”.
How long all this will last (or become permanent) depends on the outcome of all the alleged negotiating happening right now between the U.S. and other countries. If key trading partners drop their tariffs on American goods (0-0 would be a great outcome) then watch as all this gnashing of teeth gets completely erased.
If there is just a lot of talk and no results then the current administration will continue to watch as anti American feelings gain steam.
People vote with their wallets. Sometimes it’s a direct reflection of the brands own behavior and sometimes it’s a negative halo effect. I never bought the pillow that looked like it might be worth a try. I haven’t bought Goya beans in many years. I now shop at Lowe’s rather than Home Depot. Perfectly good products from brands that I thought were worthy of consideration. But I couldn’t handle the thought a a single dollar of mine going to support a political position I was deeply against. And I had choices. Habits and autopilot decisions can be reset. I’ll continue to hope that anti-American sentiment is really anti-Trump sentiment…along with his band of enablers. If this administrations policies take hold for the longer term, that could very well become wide spread anti-American sentiment, and our trade numbers will reflect that. If a new administration at some point can swing the pendulum back to a more cooperative position, then maybe a good portion of the uncomfortable sentiment dissipates. In the meantime all a brand can do is live its own values and then deal with the markets reaction to those values.
Their problem is that given the re-election of this guy, how can they be sure it won’t happen again? I think it’s going to be decades before we are remotely trusted again.
No doubt, there are plenty of strong reactions to the shift in trade and tariffs right now. But there’s also a good amount of positive sentiment built up over decades around the globe towards American brands and culture, which won’t fall apart over night. Over the long haul, assuming a number of trade deals get worked out, much of the anger and tension from previously productive trading partner countries will have subsided.
One glimmer of hope is the renewed relationship between the U.S. and Canada under Prime Minister Mark Carney. If fresh trade talks deescalate the drama, minimize tariffs and stop annexation threats, more Canadians may feel willing to buy American products and travel to the States. It will take time to rebuild trust among Canadian consumers.