FAQ: Coca-Cola's Challenges in India Amid U.S. Tariff Dispute and 'Buy Local' Movement

What is the main challenge Coca-Cola is facing in India?

Coca-Cola is navigating a nationalistic ‘buy local’ movement in India, spurred by a 50% U.S. tariff on Indian goods, which threatens its market presence.

Why has the ‘buy local’ movement gained momentum in India?

The movement has gained momentum due to the Trump administration’s imposition of steep tariffs on Indian imports and India’s continued purchases of Russian oil, fostering anti-American sentiment.

How has Coca-Cola’s financial performance been affected?

In its second-quarter 2025 earnings report, Coca-Cola reported a slight shortfall in net revenues and a 1% global volume decline, with India and Mexico noted as contributing factors.

Who is supporting the ‘buy local’ movement in India?

The movement is championed by a faction of Indian business leaders and supporters of Prime Minister Narendra Modi, advocating for economic self-reliance.

What was Coca-Cola’s stock performance as of August 14, 2025?

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%.

Has Coca-Cola issued a public statement on the boycott calls?

As of the report, Coca-Cola has not issued a public statement on the boycott calls, adopting a cautious, wait-and-see approach.

What are the potential implications for Coca-Cola in India?

The situation highlights a vulnerability for Coca-Cola in India, where geopolitical tensions and nationalistic consumer movements could directly impact its sales and market presence.

Where is this situation taking place?

This situation is unfolding in India, a vital growth market for Coca-Cola, amid U.S.-India trade tensions.