Coca-Cola is navigating a new wave of challenges in India, as a 50% tariff on Indian goods imposed by the U.S. has galvanized a nationalistic “buy local” movement and sparked calls for consumer boycotts. This resurgence of anti-American sentiment, championed by a faction of Indian business leaders and supporters of Prime Minister Narendra Modi, threatens to disrupt a vital growth market for the beverage giant.

The trade tensions stem from the Trump administration’s imposition of a steep tariff on Indian imports, a move reportedly compounded by New Delhi’s continued purchases of Russian oil. This action has rattled Indian exporters and prompted a public push for economic self-reliance. For a multinational like Coca-Cola, which has cultivated a significant and well-established presence in India, the situation presents a complex balancing act. The company’s products often dominate store shelves, and the brand has long been associated with a modern, aspirational lifestyle for the country’s vast and growing consumer base.

The potential for a consumer backlash in India comes amid a mixed quarter for the company. In its second-quarter 2025 earnings report, Coca-Cola reported that while it surpassed analyst expectations for adjusted earnings per share, its net revenues of $12.5 billion fell slightly short of forecasts. The report specifically noted a decline in unit case volume in key markets, including India and Mexico, which was a contributing factor to a 1% global volume decline. This performance highlights a potential vulnerability in a market where geopolitical tensions and nationalistic consumer movements could directly impact the company’s top line. As of August 14, 2025, Coca-Cola’s stock (NYSE: KO) was trading at approximately $69.52, reflecting a daily decline of about 1.3%.

While there has been no immediate indication of a significant decline in sales, analysts are closely monitoring consumer sentiment. The situation highlights a vulnerability for foreign brands in a market where a nationalist “swadeshi” movement can be swiftly mobilized. As of this report, Coca-Cola has not issued a public statement on the boycott calls, a stance that reflects a cautious, wait-and-see approach as diplomatic negotiations between Washington and New Delhi continue. The long-term outcome could have lasting implications for the presence of American businesses in one of the world’s fastest-growing economies.

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