A CNBC Report: For decades, multinational corporations operated under the belief that they could transcend national borders, access free markets, and serve a global customer base while remaining detached from geopolitical tensions. President Donald Trump’s return to the White House has shattered that notion.

The foundational assumptions of corporate strategy — market access driven by consumer demand and regulatory compliance—are giving way to a world where political allegiance and “home country” dynamics determine success.

This shift isn’t solely driven by Trump’s policies. Though his America First economic policy — marked by tariff threats, economic coercion, and protectionist measures — has thrust U.S. companies into the heart of rising global tensions, with various responses from the international community: heightened regulatory scrutiny, consumer boycotts, and reputational risks for American brands.

It’s not just boycotts, but the patriotic calls to support local industries. Trump’s renewed commitment to America First has led to sweeping tariff threats, including potential 60% duties on Chinese products. These measures strain relations not just with China but also with key allies like Canada, Mexico, and the European Union. U.S. corporations are now viewed abroad as extensions of American foreign policy, exposing them to backlash."  

Canadians are dropping American brands big time and it will spill over to Apple, Dell and others by the fall if the tariffs aren't ended. I don't think that the Radical U.S. president understands the size of the backlash coming to American brands. Once consumers switch brands, they'll lose these customers for decades or longer.

The CNBC report further noted that the consequences are clear. In China, boycotts of American products are on the rise. Apple, once dominant in the Chinese smartphone market, saw its share drop to 15% in Q3 2024 as Huawei claimed 19%, according to Counterpoint Research. In its most recent earnings, Apple’s China sales declined 11.1%, its largest drop in China sales since the same quarter last year.

Starbucks  faces similar challenges, losing ground to homegrown competitor Luckin Coffee, which offers lower prices, faster service, and localized flavors. Tesla  — once China’s leading foreign EV brand — has seen a 22% year-over-year decline in sales, with BYD dominating the domestic market.

Nationalist sentiment, amplified by state media, has left U.S. firms vulnerable — a trend Trump’s policies will only intensify. While many companies will strive to maintain a presence in China, the balance has shifted decisively toward domestic brands.

Germany offers a striking example. Elon Musk’s perceived alignment with the far-right Alternative für Deutschland (AfD) party has sparked protests and boycotts, leading to a nearly 60% drop in Tesla’s German sales since early 2024. Sales for Tesla so far in 2025 are down 45% year over year.

Economic nationalism is now a global phenomenon. The weaponization of trade and investment affects multinationals worldwide. In the Middle East and Africa, U.S. firms face growing scrutiny as regional governments diversify economic partnerships away from Washington.

For more, read the full CNBC report by Dewardric L. McNeal.