Boycott economics

Weekly Updates

The rise of economic nationalism has been matched by rising consumer activism. US President Trump’s suggestion that Canada become a US state encouraged a Canadian consumer boycott of US-branded goods. International disagreement with US policies (alongside fear of detention) has significantly reduced the number of global visitors to the US, with notably sharp falls in visitors from the UK and Germany. Sales of Tesla cars have fallen in Europe and elsewhere, characterized by the media as a consumer boycott.
South Korean consumers boycotted Japanese imports after 2019, protesting Japan’s trade policies. Consumers in China have engaged in boycotts against specific companies in recent years, in some cases supported by the state.
The economic outcome of corporate boycotts often depends on who the main customers are. For example, a liberal boycott of a company with politically conservative customers may mean higher sales as the main customer group “rallies around” the targeted company.
A consumer boycott against a country is different. Nationalism tends to be a more unifying force, making “rallying around” less likely. Some exports may be affected (Korean K-Pop bands were urged not to tour Japan).But boycotting a country also depends on alternative goods being available, and consumers being aware of which country produces the products that they buy.