Trump’s Tariff Hike Fuels India’s ‘Go Swadeshi’ Push; McDonald’s, Pepsi Risk Losing Key Market

Key Points:

Following the Trump Administration’s unreasonable 50% tariff hike on Indian goods, Yoga Guru Ramdev called for a nationwide boycott of American products. He said Indians should stop using all U.S.-made goods. As a result, major American multinational companies now face the threat of losing access to one of their largest markets.

The tariff, which came into effect on 27 August 2025, was raised from 25% to 50%. The U.S. had earlier warned India against buying Russian oil, but India declined, citing national interest. In retaliation, President Trump imposed a higher tariff. This sparked strong reactions from Indian leaders. Ramdev Baba urged citizens to boycott American food chains such as Pepsi, Coca-Cola, Subway, KFC, and McDonald’s. He said no Indian should be seen at these outlets and warned that such a boycott could create chaos in America. He accused Trump of “political bullying, hooliganism, and dictatorship,” calling the tariff move an insult to India.

See Also: Experts Pointed Hypocrisy of Trump's Fresh 25% Tariff on India for buying Russian Oil, Taking The Total Tariff to 50%. PM Modi's Statement Suggests No Compromise on India's Interest

The new tariffs, which doubled the earlier levy of 25%, target a wide range of Indian goods including garments, gems and jewellery, footwear, sporting goods, furniture, and chemicals. Experts warn that these measures could endanger thousands of exporters and jobs—including in Gujarat—and potentially slow down India’s economic growth.

The Indian government strongly criticised Washington’s decision, calling it “unfair, unjustified, and unreasonable.” Officials stressed that India’s energy sourcing decisions are based on market conditions and national interest. They also pointed out that several U.S. allies, including China, continue to purchase Russian oil without facing similar penalties.

Democrats on the U.S. House Foreign Affairs Committee also condemned Trump for singling out India while sparing larger buyers of Russian energy like China. The panel said the move was “hurting Americans and sabotaging the U.S.-India relationship.”

Ramdev said Trump had “committed a blunder” by provoking India. He warned that if India aligned with Russia, China, Middle Eastern, and European nations, it could weaken the dominance of the U.S. dollar. He also reiterated his vision of Swadeshi, which he defined as goods “made in India, made for the world with Indian money,” while promoting indigenous agriculture, education, and medicine. 

See Also: Former US Ambassador to the UN, Nikki Haley, Warns Trump’s Tariffs Could Damage Ties With India

With a market of 1.5 billion consumers, the U.S. also stood to lose significantly. Prime Minister Narendra Modi echoed the sentiment, stating that India should become a global manufacturing hub. He emphasized that Indian citizens should buy products “made by the sweat of Indian workers.” He also urged Indians to embrace the “vocal for local” mantra and support homegrown products.

Meanwhile, both U.S. markets and Indian businesses are bracing for impact. PepsiCo India reported ₹8,200 crore in revenue in FY24, making India one of its top 15 global markets. McDonald’s operator Westlife Foodworld posted ₹2,390 crore revenue the same year. A nationwide boycott could severely hurt such companies. Given India’s massive population and high consumption levels, losing access to this market would be a huge setback for U.S. corporations.

Trump defended the tariffs, accusing India of profiting from the resale of Russian oil. “They don’t care how many people in Ukraine are being killed,” he said on Truth Social, adding he would “substantially raise” tariffs further if necessary. India, in response, has pledged to take all steps required to safeguard its economic interests. [Rh/VP]

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