Today, economic nationalism is a worldwide phenomenon that affects big market players like Apple, Starbucks, Tesla, McDonald’s, and Domino’s Pizza, to mention a few. These companies have benefited from free trade and access to international markets and customers. Western firms now operate where geopolitics is increasingly involved in trade, investment, and corporate presence.
According to foreign policy specialist Dewardric McNeal, the corporate world is changing, where success is determined by political loyalty, “patriotic dividends,” and “home country” dynamics.
Multinational firms functioned for decades with the conviction that they could reach a worldwide client base and access open markets and cross-national boundaries without being involved in geopolitical conflicts. That idea has been disproved by President Donald Trump’s return to the White House.
A world where political loyalty and “home country” dynamics dictate success is replacing the fundamental tenets of business strategy, which are market access driven by customer demand and regulatory compliance.
Trump’s policies aren’t the only factor causing this change. The international community has responded to his America First economic policy, which is characterized by protectionist policies, financial coercion, tariff threats, and several other ways, including increased regulatory scrutiny, consumer boycotts, and reputational risks for American brands.
In addition to boycotts, there are patriotic appeals to support regional businesses. Take the recent success of the Chinese animated picture “Ne Zha,” the first non-Hollywood film to earn over $1 billion at the Chinese box office and the highest-grossing movie in Chinese history.
China’s state-run economic policy encourages nationalist consumption worldwide, further politicizing markets. Today’s businesses in the West, especially those in the United States, operate where trade, investment, and corporate presence are more closely linked to geopolitics than economics.
Trump’s reaffirmed pledge to put America first has resulted in broad tariff threats, such as possible 60% levies on goods originating from China. Relationships are strained by these actions not only with China but also with important allies like the European Union, Canada, and Mexico. American firms are vulnerable to criticism as they are now perceived as international manifestations of American foreign policy.
The repercussions are obvious. Boycotts of American goods are becoming more common in China. According to Counterpoint Research, Apple, which used to dominate the Chinese smartphone market, saw its share decline to 15% in Q3 2024, while Huawei secured 19%. Apple’s China sales fell 11.1% in its most recent report, the worst loss since the same quarter last year. Starbucks is facing comparable difficulties as it loses market share to its domestic rival, iva,l Luckin Coffee, which provides cheaper costs, quicker service, and better regional tastes. Sales of Tesla, previously the top international EV brand in China, have dropped 22% year over year, while BYD now controls most of the local market.
Nationalist sentiment, exacerbated by state media, has left US corporations exposed – a pattern Trump’s policies will undoubtedly accelerate. The balance has changed in favor of indigenous brands, even if many businesses will still try to be present in China.
A Worldwide Patriotic Dividend:
China is not the only country that has economic nationalism. Canada, Mexico, and several EU countries are among those targeted by Trump’s tariffs, and they are seeing a patriotic dividend that benefits homegrown brands. American fast-food restaurants like McDonald’s and Domino’s are declining sales in Mexico, while local options like Vips and El Farolito are being promoted via campaigns. Trade conflicts and aspirations for digital sovereignty are the leading causes of the reaction against American corporations in Europe. Renewing US tariffs on European steel and aluminum have caused French shops to prefer homegrown products.
A notable example is Germany. Tesla’s German sales have dropped by about 60% since early 2024 due to demonstrations and boycotts triggered by Elon Musk’s alleged affiliation with the far-right Alternative für Deutschland (AfD) party. As of 2025, Tesla’s sales have decreased by 45% over the previous year.
Regulatory bodies are now examining the activities of Tesla’s gigafactory in Berlin. This demonstrates how American businesses are no longer viewed as impartial entities; their competitive position overseas is now shaped by their CEOs’ political connections and domestic policies.
Economic nationalism has spread throughout the world. The weaponization of trade and investment impacts global multinational corporations. As regional governments shift their economic ties away from Washington, U.S. companies are under increasing scrutiny in the Middle East and Africa. US business dominance in emerging economies has been further undermined by China’s Belt and Road Initiative and growing BRICS economic connections, which account for over 30% of the world’s GDP. The Trump administration chose the Panama Canal as one of its first international policy concerns partly because of this.
Once a bastion for American businesses, Southeast Asia is now favoring Chinese and local companies more and more in nations like Indonesia and Malaysia. US behemoths like Google and Meta are disproportionately affected by Indonesia’s 2024 digital sovereignty law, which requires foreign internet companies to retain user data locally.
The difficulties that international corporations face in this new era are best shown by Tesla. Due to growing trade tensions between the United States and China, the company’s ambitions to obtain Chinese regulatory approval for its autonomous driving technology have stopped. Chinese officials now see Tesla’s license as negotiating leverage with the Trump administration.
Musk emphasized the conundrum: the United States forbids processing in China, but China forbids Tesla from sending training data outside. The Full Self-Driving (FSD) deployment in China is in jeopardy because of this regulatory impasse, which directly links Tesla’s commercial success to more extensive trade talks.
Once its most profitable overseas market, China is now a burden for Tesla. In addition to driving growth, the company’s gigafactory in Shanghai fortified Chinese EV rivals. Tesla now holds a 7% share of the Chinese EV market, while BYD presently has a 35% share. Tesla’s problems are made worse by Musk’s alleged political views, which run the danger of offending customers in the US and beyond.
The world is becoming a fragmented environment influenced by national identities and economic blocs rather than a single, linked market. The days of companies operating above the geopolitical fray are long gone. Businesses must make difficult decisions. Do they risk losing access to one of the biggest consumer markets in the world by supporting Washington’s drive for economic separation from China? Can they handle the increasingly stringent regulations in Europe designed to limit the dominance of US technology? How can they keep good relations with Washington while handling changes in the Middle East’s geopolitics? How do they maintain their commitment to Trump’s America First program without coming across as foreign policy instruments?
The foundation of a global corporation was the belief that economic progress should take precedence over politics and free markets. That fundamental idea has fallen apart. Businesses that don’t adjust to the new, politically charged normal in the Trump era will be subject to criticism, exclusion, limited market access, and declining customer acceptability and relevance.
Before China’s more coordinated approach and the worldwide development of “Anything But American” consumption further weakened their competitive edge, US enterprises must recognize this transition and devise measures that protect national security and economic success.
