In the rush to respond to the extensive reciprocal tariffs imposed by Trump, there is a growing concern over anti-American sentiments targeting US brands. A 10% baseline tariff came into effect on April 5, with higher reciprocal tariffs scheduled to begin on April 9.

Although food chains are minimally impacted by tariffs on commodity imports due to domestic sourcing and exemptions under the USMCA, companies like McDonald's, Yum! Brands, Starbucks, and Domino's could face challenges in international markets as customers become more cautious, as noted by BTIG analyst Peter Saleh.

The main worry is the potential backlash against Western or US brands in various countries, with estimates suggesting that global boycotts may reduce the US GDP by 0.1% to 0.3% this year, translating to a significant economic impact.

Following an extended period of China's strict zero-COVID policy that outlasted US measures, major fast-food players were just starting to revitalize their international businesses after the pandemic. Last quarter, McDonald's showed growth in global same-store sales, with notable improvements in regions like the Middle East, Japan, and China.

Starbucks, however, is still experiencing challenges in its international operations, notably in China where sales have declined. Yum China also faced a tough market in the fourth quarter, reporting decreased same-store sales for KFC and Pizza Hut. CEO Joey Wat characterized the environment as difficult due to value-conscious consumers.