Key Takeaways– A 2017 U.S. executive order reinforces “Made in USA” claims, tying them to national‑populist trade policy.
- Research on recent national‑populist electoral victories shows domestic brands gain a clear advantage in advertising and price‑promotion effectiveness.
- Foreign brands often see a decline in ad impact (≈ 0.16 % drop) and market‑share growth when populist parties rise.
- Concealing country of origin can backfire; transparent, locally‑focused storytelling is more sustainable.
- Consumer perceptions of origin are shaped by brand attributes and complex global supply chains, not just manufacturing location.
- Marketers must tailor regional messaging and balance transparency with the political climate to protect sales and reputation.
Executive Order and Its Political Context
In March 2017 President Donald Trump signed an executive order aimed at curbing misleading “Made in USA” advertising, especially within digital marketplaces. The measure formed part of a broader trade agenda that the White House described as delivering on the promise to “put America first.” The order emphasized that American firms that design, build, and manufacture essentially all components of a product domestically deserve the full branding benefits of supporting the national economy, and that consumers deserve certainty when purchasing goods labeled as American‑origin.
Populism, Country‑of‑Origin Labelling, and Brand Identity
Country‑of‑origin labelling has become increasingly politicised as nationalist sentiment rises worldwide. Products such as Scotch whisky or French champagne, whose prestige is tightly bound to national provenance, illustrate how origin can serve as a source of prestige and differentiation. Yet our research indicates that the influence of populist politics extends well beyond culturally iconic items, affecting consumer expectations and marketing strategies across a wide range of sectors.
Study Design: Linking Electoral Outcomes to Advertising Performance
To assess how national‑populist electoral gains reshape marketing dynamics, we examined the automobile industry in the United States and the household‑textile sector in France. In the U.S., we compared new‑vehicle registrations in Texas before and after the 2016 presidential election, which ushered a populist administration to power. In France, we recreated the analysis during the 2024 EU elections, when Marine Le Pen’s National Rally achieved unprecedented vote shares. By measuring changes in advertising spend, effectiveness, and market‑share movement, we could isolate the impact of populist victories on brand performance. Advertising Effectiveness Shifts When Populists Ascend
Our findings revealed that, after a national‑populist party secured electoral success, domestic brands experienced a disproportionate boost in advertising effectiveness. Market share for home‑grown brands grew markedly more than that of foreign competitors, even though overall advertising budgets were comparable. Conversely, the impact of foreign‑brand advertising declined by roughly 0.16 % post‑election relative to pre‑election levels, suggesting a loss of consumer resonance during populist waves. This pattern held true across both the Texas auto market and the French textile sector. Price‑Promotion Dynamics Favor Domestic Players
A parallel analysis of price promotions showed that domestic brands not only outperformed foreign rivals in advertising but also achieved greater gains from promotional spend. While both groups increased promotional activity by similar amounts, domestic brands captured an additional 0.30 % in market‑share growth, whereas foreign brands saw negligible or negative shifts. The results indicate that price‑promotion leverage is amplified when national‑populist narratives dominate the political landscape, granting domestic firms a competitive edge.
Strategic Responses: Localising Global Brands
Faced with these dynamics, some multinational corporations have begun to foreground their local contributions rather than hide the complexities of their origins. A notable case is the premium ice‑cream brand Häagen‑Dazs, whose Danish‑sounding name masks a Polish‑Jewish heritage and worldwide production footprint. Instead of obscuring this history, the brand spotlights its local manufacturing, job creation, and supply‑chain investments. Coca‑Cola’s recent German campaign exemplifies this shift: advertisements feature German‑named employees and the slogan “Made in Germany,” explicitly tying the brand to domestic production. Such messaging aligns with heightened nationalist sentiment while avoiding the pitfalls of misrepresentation.
The Limits of Concealing Origin and Consumer Backlash
Attempts to conceal or simplify a brand’s country of origin can provoke consumer distrust and reputational damage. Transparency, when paired with authentic local narratives, tends to resonate more strongly, especially in politically charged environments. Marketers must therefore strike a balance: they can celebrate local economic contributions without overstating national provenance, ensuring that messaging is adapted to regional nuances where populist support varies within a single country.
Navigating the Complexity of Global Supply Chains
Consumer perceptions of origin often diverge from the reality of multinational supply chains. For instance, during the 2016 U.S. election cycle, several “foreign” automobile brands actually produced a higher proportion of their U.S. vehicles domestically than certain “American” brands. Moreover, the appeal of a brand’s origin story can be moderated by attributes such as quality, reliability, or style; Japanese manufacturers, for example, enjoy strong reliability associations among U.S. shoppers, regardless of geographic label. Recognising that origin labelling now carries political weight—and is not merely an informational cue—is essential for crafting robust brand strategies. Strategic Implications for Marketers
In a climate where political affiliation can amplify or dampen consumer preference, advertisers should monitor electoral outcomes and adjust their messaging accordingly. Transparent, region‑specific storytelling that underscores local economic benefits appears to be the most resilient approach, especially when national‑populist currents influence purchasing decisions. Companies that align their branding with the prevailing political narrative—while remaining honest about operational realities—are better positioned to capture market share and preserve brand reputation in an increasingly polarized global marketplace.
