Executive Summary
- Indian yoga guru Baba Ramdev has called for a “massive boycott” of major American multinational brands like Pepsi and McDonald’s in response to President Trump’s recent decision to impose a 50 percent tariff on Indian goods.
- President Trump’s tariff hike to 50 percent on Indian imports, effective Wednesday, was imposed over India’s continued purchases of Russian Federation oil, escalating from an originally planned 25 percent.
- The boycott call reflects a broader surge of anti-U.S. sentiment and a push for economic self-reliance across India, with support from lawmakers and Prime Minister Narendra Modi, potentially posing significant challenges for U.S. businesses.
The Story So Far
- President Trump’s recent decision to impose a 50 percent tariff on Indian goods, specifically doubling the duty due to India’s continued purchases of Russian oil, has triggered widespread condemnation and a surge of anti-U.S. sentiment across India. This move has amplified calls for economic self-reliance, known as ‘Swadeshi,’ with prominent figures like Baba Ramdev and Prime Minister Narendra Modi urging a boycott of American brands in response to what India views as an ‘unfair, unjustified and unreasonable’ trade action.
Why This Matters
- The “massive boycott” of major American multinational brands, initiated in response to President Trump’s increased tariffs on Indian goods, signals a significant escalation in trade tensions between the two nations, potentially inflicting substantial revenue losses on U.S. companies like Pepsi and McDonald’s, while simultaneously amplifying India’s domestic “Swadeshi” movement towards greater economic self-reliance.
Who Thinks What?
- Indian yoga guru Baba Ramdev advocates for a “massive boycott” of major American multinational brands like Pepsi and McDonald’s to create “chaos” in America and pressure President Trump to reverse his tariff decision.
- The Indian Ministry of External Affairs and other Indian officials, including Prime Minister Narendra Modi, condemn the U.S. tariff hike as “unfair, unjustified and unreasonable,” advocating for economic self-reliance (“Swadeshi”) and urging Indians to prioritize “made in India” products.
- President Trump’s administration imposed a 50 percent tariff on Indian goods, escalating from an earlier 25 percent plan, in response to India’s continued purchases of Russian Federation oil.
Indian yoga guru and businessman Baba Ramdev has called for a “massive boycott” of major American multinational brands, including Pepsi and McDonald’s, in response to President Trump’s recent decision to impose a 50 percent tariff on Indian goods. This latest call amplifies growing anti-U.S. sentiment and a push for economic self-reliance across India, following the tariff hike that took effect on Wednesday.
Ramdev, a prominent public figure with nearly three million Instagram followers, urged Indians to “completely boycott” American brands. He specifically named Pepsi, Coca-Cola, Subway, KFC, and McDonald’s, stating that “not a single Indian should be seen at the counters” of these companies. He further suggested that such a boycott would create “chaos” in America and pressure Trump to reverse his tariff decision.
Tariff Escalation and Indian Reaction
The recent tariff hike by President Trump doubled the duty on Indian imports to 50 percent, a move that came into effect on Wednesday. This increase was imposed over India’s continued purchases of Russian Federation oil, escalating from an originally planned 25 percent tariff announced earlier this year.
The Indian Ministry of External Affairs immediately condemned the tariff hike, labeling it “unfair, unjustified and unreasonable.” Experts have warned that the growing rift between the two nations, traditionally friendly, could be exploited by China both politically and economically.
Growing Calls for Economic Self-Reliance
Ramdev’s boycott call reflects a broader surge of anti-U.S. sentiment that has swept India in recent weeks. Grassroots campaigners and lawmakers have expressed outrage at the tariff increase, advocating for economic self-reliance, a concept known as “Swadeshi.”
Ashok Mittal, a member of India’s Parliament, sent an open letter to President Trump in early August, highlighting India’s contributions to the U.S. economy. He warned that “strategic restriction” on American purchases would be more detrimental to the United States than to India. Earlier this month, the Swadeshi Jagran Manch, a political movement with ties to Prime Minister Narendra Modi’s party, organized protests across India advocating for a boycott of all U.S. goods.
Prime Minister Narendra Modi has also urged Indians to abstain from foreign-sourced products and prioritize those “made in India.” In a recent speech, Modi affirmed his government’s commitment to protecting small entrepreneurs, farmers, and animal keepers, vowing to strengthen India’s ability to withstand external pressure.
Potential Impact on U.S. Businesses
With India’s population approaching 1.5 billion, a widespread boycott could pose significant challenges for U.S. companies operating in the country. Westlife Foodworld, the master franchisee for McDonald’s in western and southern India, reported revenues of approximately $271 million in its most recent fiscal year.
Similarly, Indian media outlets reported earlier this year that PepsiCo India’s revenue had reached the equivalent of about $1 billion. Previous anti-American boycotts triggered by Trump’s tariffs have occurred in other affected countries, including France, the United Kingdom, and notably, Canada.
The latest tariff hike and the subsequent calls for a boycott underscore the escalating trade tensions between the United States and India. The long-term impact of these actions on American businesses operating within India remains to be seen.
