How U.S. Policy Shifts Are Fueling Possible Global Boycotts and Brand Misinformation Wars

U.S. President Donald Trump’s announcement to take over the Gaza Strip has triggered strong world reactions, compounded by new tariffs and mass deportations. Global markets have already responded, and the ripple effects are expected to impact domestic markets where U.S. brands have a significant presence.

Key Findings

During the 2023 Israel-Gaza war, misinformation was rife.  News spread widely on TikTok, Telegram, and X falsely claiming that Starbucks were financially supporting Israel’s military. A McDonald’s franchise in Israel provided free meals to Israeli soldiers, dividing public opinions and Starbucks was also falsely accused of direct military donations despite having no active operations in Israel.

At the same time, U.S. lawmakers accused TikTok’s algorithm of favouring anti-Israel and pro-Hamas content over pro-Israel perspectives. Some claims suggested China was leveraging TikTok to manipulate Western narratives. False reports also circulated, alleging that TikTok executives were actively suppressing pro-Israel voices.

Earlier, in 2018, Trump's 2018 tariff hike on steel and aluminum imports, sparked retaliatory measures from key trade partners like the European Union (EU) and impacted Harley-Davidson.  The hikes, aimed at protecting U.S. industries from foreign competition, particularly from China, triggered the EU to slap tariffs on America’s most iconic motorcycle brands instead.  In response, Harley-Davidson chose to expand to Thailand, but was hit with misinformation campaigns, where it was accused of being anti-American. 

In Malaysia, Tesla is encountering significant boycott movements due to CEO Elon Musk's public endorsement of U.S. President Donald Trump's contentious Gaza policy, which has incited widespread anger over potential displacement of Palestinians. 

Who It Affects

Essentially, anything U.S related was impacted by these major news and policy shifts, here are some examples:

• Fast food and beverage chains – Global brands with franchise-based business models such as McDonalds, Starbucks, Coca-Cola and Pepsi
• Retail and consumer brands – Companies with significant presence in markets that were pro-Palestinian, such as Adidas  
• Social media platforms 
  
  • As misinformation spreads rapidly, content moderation becomes difficult for applications associated with Meta. Meta’s removal  of fact checking features adds to the challenge
  • TikTok, still grappling with the fallout from the 2023 controversy, remains under pressure as it awaits a decision on a potential ban pending a sale to a new owner.
• Tech companies with foreign ties – Platforms owned by non-Western companies face significant geopolitical risks. Faqcheck’s analysis of DeepSeek highlighted the impact on technology-related brands and their broader implications.
• Automotive - Tesla’s ties to Elon Musk and his vocal support for Trump's Gaza policy have sparked global boycotts, with particularly strong backlash in markets like Malaysia. 

Why It Matters

As it was observed since October 7 2023, misinformation can significantly impact consumer trust, brand reputation, and financial performance. The boycotts in the Middle East and Southeast Asia demonstrated how quickly false narratives can go viral, leading to real-world consequences such as revenue losses and internal corporate conflicts.

Government scrutiny of social media algorithms can lead to regulatory crackdowns, potential bans, and financial consequences. Advertisers’ reluctance to associate with politically sensitive content and fake news threatens platform revenue. TikTok’s case highlights growing concerns over algorithmic influence and foreign interference in global narratives.

The backlash against Tesla underscores how a single executive’s political stance can directly impact global brand perception. Musk’s endorsement of Trump’s Gaza policy has not only alienated consumers but also affected Tesla’s market positioning in politically sensitive regions like Malaysia. The viral “swasticar” controversy demonstrates how misinformation and political backlash can merge, accelerating boycotts and reputational harm.

This case highlights how public statements from influential figures can trigger boycotts or support, often amplified by social media. Without a swift response or clear countermeasures, brands risk becoming vulnerable to misinformation and reputational damage.

Trends & Developments

• Localised responses – McDonald’s clarified that each franchise operates independently to distance its corporate brand from the controversy.
• Legal action – Starbucks had to manage its workers' union who were spreading messages about the war.
• Public apology - Adidas issued a public apology after dropping their American-Palestinian ambassador from an advertisement campaign and potentially faced revenue loss
• Increased transparency efforts – TikTok released data reports to counter bias accusations.
• Fact-checking partnerships – The platform worked with fact-checkers to label false claims.
• Regulatory pressure 
  
  • U.S. lawmakers continue to push for restrictions on TikTok due to national security concerns.
  • EU’s retaliatory tariffs raised the price of Harley motorcycles in Europe, making them less competitive in their second-largest market after the U.S.

What We Anticipate & Opportunities

Faqcheck has monitored these trends and anticipates similar boycotts, misinformation, and disinformation trends in response to major announcements from the current U.S. administration.

Widespread boycotts are likely, particularly in the Middle East, Southeast Asia, and other regions with strong pro-Palestinian sentiments, as well as in Canada, Latin America, and other markets affected by these policies. These radical announcements could impact brands with declined sales, and potential government pushback from other markets. 

Calls for boycotts are gaining traction, with Canadians and Latin American groups urging consumers to reject U.S. products. Younger, socially conscious demographics—especially Gen Z and Millennials—may actively distance themselves from brands linked to these decisions, using social media to amplify their stance.

At the same time, competitors could seize the opportunity to strengthen their brands at the expense of U.S. companies. This environment also heightens the risks of misinformation and disinformation targeting U.S.-affiliated enterprises.

‍