Trump's trade war ignites brand backlash
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Anti-American sentiment abroad has been on the rise, with President Trump's unpredictable trade policies exacerbating the issue.
Why it matters: Communication and marketing teams at multinational companies are grappling with how America's reputation might be impacting their own.
State of play: Since Trump took office in January, the average net favorability of the U.S. has fallen by roughly 20 points worldwide, with consumer markets in North America and Europe seeing some of the biggest declines, according to a Morning Consult analysis.
- Canadian consumers are among the most likely to avoid American brands due to U.S. trade policies.
In response, U.S. companies that operate internationally are preparing for backlash or boycotts as geopolitical tensions rise.
What they're saying: Engaging regional stakeholders — employees, vendors, partners and trade associations in the region — is important during moments of geopolitical tension, says Dave Samson, chief corporate affairs counsel at iQ360.
- "Business leaders should not shout from the mountaintops, because you don't want to invite unnecessary scrutiny, but opening up clear channels of communication with your employees, with your key stakeholders, is important," he said.
- "It seems like common sense, but in moments like this, people tend to hunker down when it's actually a time to speak out more, but not do it in a way that's going to invite public backlash."
Zoom in: One way to dodge backlash is to make sure regional marketing campaigns and consumer communications strike the right tone.
- "You're going to probably have some brand erosion," says Anne Marie Malecha, CEO of Dezenhall Resources. "I don't think there's any way around that right now, but the name of the game is survival. And survival happens by, first and foremost, doing no harm, no unforced errors."
- To avoid this, she adds, American multinationals should have communication experts in the region who "understand the culture in which they're operating" to make judgment calls on what locals might favor in terms of messaging.
Zoom out: Signaling to regional markets that you're anti-tariff could help soften the blow, says Lauren Tomlinson, principal at Cornerstone Government Affairs.
- "It's good to go out and talk about the impact that these tariffs will have on your particular business," she said. "For example, if you have to raise the cost of your product because it's more expensive to make, that is something that you should go out and talk about to kind of distance yourself from the tariff policy of the United States at the moment."
The bottom line: America's reputation "is the greatest geopolitical brand ever created," Wall Street Journal editor at large Gerry Baker recently wrote.
- "Brands have real value. It isn't always easy to calculate, but businesses from BlackBerry to Bud Light know when they have lost it. Destroying geopolitical brand value can be devastating too."
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