Pepsi, Coca-Cola, KFC, McD, Subway | American giants under 'Swadeshi' heat amid Trump's tariffs

A surge of anti-US sentiment is sweeping through India after US President Donald Trump slapped punitive tariffs of 50 per cent on Indian goods, citing New Delhi’s continuing imports of Russian oil. The move, which came on top of an earlier 25 per cent penalty, has sparked a wave of public anger and a renewed call for “swadeshi” – the use of locally made products.

Boycott Calls Gather Steam

From social media to street corners, calls to boycott American brands have intensified. Yoga guru Ramdev went a step further, urging Indians to completely shun multinational chains like Pepsi, Coca-Cola, McDonald’s, KFC and Subway. “Not a single Indian should be seen at these counters,” he declared, warning that a nationwide boycott would create “chaos in America.” His remarks, captured in a viral clip and widely reported, drew on nationalist sentiment. Ramdev described the US action as “political bullying, hooliganism and dictatorship,” appealing for a united stand against what he sees as economic coercion. Boycotts of US goods are not unique to India. Similar movements have been reported in parts of Europe, including France and the UK, as well as in Canada. But with India’s 1.5 billion-strong population, the scale of impact could be far more significant if consumers withdraw en masse.

Modi’s “Vocal for Local” Push

Prime Minister Narendra Modi, while not explicitly naming the US, reinforced the call for economic self-reliance. Reviving the swadeshi spirit, he urged citizens to measure every purchase by whether it was made with Indian labour and skill. “We must adopt the mantra of being vocal for local,” he said, underscoring that such choices were essential if India was to rise as the world’s third-largest economy. In an indirect swipe at Trump, Modi remarked that “the politics of economic selfishness” is now driving nations to shield their own interests, leaving others to fend for themselves.

Washington Doubles Down

Trump has shown little inclination to soften his stance. On August 6, he accused India on Truth Social of buying “massive amounts of Russian oil” and reselling it for “big profits,” indifferent to the war in Ukraine. He justified the decision to substantially hike tariffs, saying it was a necessary penalty.

The new duties took effect on August 27, even as New Delhi branded the move “unfair, unjustified and unreasonable,” reserving the right to respond with protective measures of its own.

Political Pushback at Home

The escalating trade row has also stirred political responses within India. AAP MP Ashok Kumar Mittal, in an open letter to Trump, evoked the Swadeshi Movement of 1905. He argued that if modern India’s 146 crore citizens embraced the same spirit, it would hurt US corporations far more than India. His letter urged Trump to “choose dialogue over discord, coordination over coercion.”

Stakes for US Corporates in India

The boycott rhetoric comes at a time when American companies have made deep inroads into India’s consumer market. Westlife Foodworld, which runs McDonald’s in West and South India, posted revenues of ₹2,390 crore in FY24 – up five per cent from the previous year. PepsiCo India, meanwhile, reported ₹8,200 crore in revenue for the same period, with India ranking among its top 15 markets worldwide. The company has invested nearly ₹3,500–4,000 crore in the country in just the last three years. If the boycott sentiment translates into consumer action, the repercussions for such firms could be significant – not just in terms of revenue but also in long-term brand perception.

A Brewing Standoff

The current episode is more than just a trade spat. It reflects how global geopolitics, oil politics and economic nationalism are colliding in unpredictable ways. For India, the challenge lies in balancing strategic interests with economic realities, while for US companies, the fear of becoming collateral damage in a political showdown is very real. The government has dismissed the new tariff regime as unjust and vowed to protect national interests. Whether that translates into retaliatory trade measures or a more assertive swadeshi push will determine how the next chapter unfolds.