US Food, Drinks Giants Face Swadeshi Heat Amid Trump Tariffs
American multinationals such as Pepsi, Coca-Cola, Subway, KFC, and McDonald's face a threat of being boycotted. India's boycott of US companies could cause massive losses and serious challenges.
A wave of anti-US sentiment has gripped India since US President Donald Trump imposed 50 percent tariffs on the South Asian nation. The tariffs on India, which were slapped due to its purchase of Russian oil, are among the highest in the world.
As a result of this, American multinationals such as Pepsi, Coca-Cola, Subway, KFC, and McDonald's face a threat of being boycotted. Yoga guru Ramdev has advised Indians to boycott all American products over Trump's tariffs on India. "Not a single Indian should be seen at the counters of Pepsi, Coca-Cola, Subway, KFC, or McDonald's. There should be such a massive boycott," he said, adding, "If this happens, chaos will ensue in America."
Anti-American boycotts are already going on in other parts of the world such as France, the United Kingdom, and Canada. With a population of 1.5 billion, India's boycott of US companies could cause massive losses and serious challenges. Prime Minister Narendra Modi has urged Indians to buy and use "swadeshi" or homegrown goods.
On August 6, Trump added a penalty of 25 percent over and above the 25 percent reciprocal tariffs on India. He posted on Truth Social, "India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits," and added, "They don't care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA."
In a calm pushback, New Delhi said the extra tariff was "unfair, unjustified and unreasonable" and declared that it would "take all actions necessary to protect national interests". The increased penalty came into effect on August 27.
Westlife Foodworld Limited, which operates McDonald's in West and South India, reported Rs 2390 crore in revenue for the fiscal year 2024, a 5 percent increase from the previous year. Meanwhile, PepsiCo India's revenue stands at Rs 8,200 crore for the fiscal year 2024. India ranks among the top 15 markets globally for PepsiCo. PepsiCo has invested close to Rs 3,500-4,000 crore in the Indian market over the last three years.
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