Trump’s Trade War Wounds Brand USA as Trust Falls Off Cliff

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The Washington Post / Demetrius Freeman/The Washington Post via Getty Images

Donald Trump’s controversial tariff blitz has bruised Brand USA as consumers dodge American logos, and marquee firms report reputational and sales damage at home and abroad.

Trump’s so-called “Liberation Day” tariffs were introduced in early April with a universal 10 percent levy and a range of higher country-specific rates.

After allies fumed and markets lurched, the federal appeals court has since ruled most of the scheme illegal, and the administration is now pleading with the Supreme Court to revive it.

Trump has met with world leaders, such as European Commission President Ursula von der Leyen, to agree tariffs on U.S. products, which have caused major brands to struggle. / BRENDAN SMIALOWSKI / Brendan SMIALOWSKI / AFP

But for some consumer giants that have long traded on an unmistakably U.S. identity—such as Coca-Cola, GM, and Facebook—the damage is already noticeable, according to a report by Axios.

Businesses that once relied on their Stars and Stripes cachet now face a tougher, colder market, according to CEOs.

The outlet quoted McDonald’s boss Chris Kempczinski, who told CNBC this week, “The aura around America has dimmed a bit.”

But while the burger behemoth’s sales are doing just about okay, Kempczinski said, others appear to be faring less well.

Booze giant Brown-Forman—the owner of Jack Daniel’s and Woodford Reserve—told investors that sales were hit after American alcohol was yanked from shelves in parts of Canada by provincial authorities protesting U.S. tariffs.

Tesla is feeling it too. The automaker’s image has taken a beating across Europe in 2025—and sales with it—amid fierce competition and anger at CEO Elon Musk’s politicking and ties to the White House.

Their struggles are playing out against a backdrop of declining global perceptions of the United States.

Axios referenced Morning Consult’s international tracking, which shows net favorability toward America turned negative in April and has stayed underwater in many markets through the summer.

Jack Daniel’s is feeling the pinch from Trump’s tariffs. / Peter Dazeley / Peter Dazeley/Getty Images

Their analysts say anti-Americanism is weighing on U.S. brands, with purchasing consideration dropping in key countries after tariff announcements.

Even at home, the mystique appears to be slipping. The report said that a WSJ-NORC survey in July found nearly 40 percent of Americans believe other countries now have stronger economies than the U.S.. That view has risen sharply since 2021—a sign that the exceptionalist narrative could be wobbling.

Tesla bills itself as a proud American brand—but for how much longer will it do so? / CFOTO / CFOTO/Future Publishing via Getty Images

Now some companies are scrambling to adapt. Kraft Heinz, for example, moved to stress its non-U.S. roots, reminding Canadians that their ketchup is made in Canada, reports Axios.

The Daily Beast has contacted the White House for comment.