Foreign Media Warn US Brand Reputation Veering toward ‘Collapse’ under Trump Policy Impact

Numerous international media outlets have recently reported that, under the influence of the Trump administration’s policies, the global reach of American brands is sustaining systemic damage. From corporate reputation to national image, the soft power accumulated by the United States over decades is now facing a test unprecedented in scale.

On May 19, an analysis from The Economist noted that over the past few decades, American companies have conquered global markets on the strength of values like “the free market,” innovation and inclusiveness, but the Trump administration’s unilateral policies are tearing that narrative apart, and promoting American culture overseas is now becoming increasingly challenging. Many U.S. companies are now forced to face a harsh reality: In the current climate, their nation of origin may no longer be an advantage — it may have become a significant liability.

In April, Danish brewer Carlsberg, which bottles Coca-Cola in Denmark, revealed that local consumers were increasingly boycotting Coca-Cola and switching to local alternatives like Jolly Cola. The analysis found that this was because of Trump’s remarks on territorial expansion and the chaotic, disorderly trade war that thoroughly angered the Danes and sparked discontent among consumers worldwide.

Since the start of Donald Trump’s second term, this resistance has continued to spread, with the strongest reactions seen in Canada and Denmark. Canadians have voiced fierce opposition to the suggestion of making their country the 51st U.S. state, while Danes, on the other hand, are angry over Trump’s ambitions for Greenland.

Earlier this year, the Canadian provinces of Ontario and Quebec removed American alcoholic beverages from government sales channels, and in April, 61% of Canadians surveyed indicated they were boycotting American goods. In Denmark, retail giant Salling Group began labeling products in its stores as “European brands” to guide consumers away from American products.

Corporate sales data confirm this trend. Tesla is a prime example. In the first quarter of 2025, the automobile manufacturer’s new vehicle registrations in the European market plunged by over 40% from last year. More troubling still, the European Commission has launched an investigation into Amazon Web Services contracts, and European trade union organizations have called for reduced reliance on U.S. companies, citing “technology security risks.”

Forbes reported on May 20 that trust in American brands is steadily eroding, as the Trump administration’s policies frequently run counter to the values the U.S. claims to uphold. Measures such as cutting climate funding, suppressing diversity initiatives, and withdrawing from the Paris Agreement stand in stark contrast to the environmental, social and governance principles promoted by American companies.

Analysts believe that the core competitiveness of American brands has long been built on consistency in values, but the Trump administration’s “America First” policy is undermining this foundation. A Nira Data survey of over 100,000 people across 100 countries in April showed that positive perceptions of the U.S. national image have plummeted compared to previous levels, with negative perceptions up by five percentage points. This trust deficit has directly translated into commercial losses. Moody’s has downgraded the U.S. credit rating, and a European Central Bank consumer survey has shown that the willingness to “forgo American products has reached record highs.” Both of these are seen as warning signs of a collapse in brand value.

Research by Morning Consult further reveals that the industries most closely linked to the U.S. national image are technology, automotive, food and beverages, and that their brand value is particularly affected by policy shocks. In contrast, the impact on the hotel, logistics and health care sectors has been relatively minor.

In a signed article on May 21, Nikkei Asia adopted an even more direct stance, flatly declaring Brand America under Trump as heading toward “collapse.” The article argued that for decades, American companies’ commercial advantage had stemmed from their consistent adherence to a set of principles, including fairness and justice, which fostered consumer trust in American products — but that the Trump administration had now made “America First” its core operating principle. In short, the U.S. has withdrawn from multilateralism, thereby altering the global geopolitical framework.

According to Michael Hart, president of the American Chamber of Commerce in China, “American firms have been accused of going to China to find cheap labor and selling out their country for profit, but what they actually did was to export the American culture of respect for employees and communities by paying their employees fairly and treating their communities well.”

To Reuters, the gradual weakening of the dollar signals that American brands are falling out of favor. Trade uncertainties, soaring fiscal deficits and skepticism toward “American exceptionalism” have shaken the confidence of investors internationally. And as the dollar retreats from its high valuations, investors expect it to lose even more of its luster.

As Warren Buffett famously said, “It takes 20 years to build a reputation and five minutes to ruin it.” Some analysts are warning that unless the U.S. can rebuild and uphold values that inspire trust, its brand equity may remain “negative equity” for a long time to come.