Tamil Nadu Hotel Owners Association announces boycott of U.S. beverages over tariffs, pushes for Indian alternatives 

INDIA – The Tamil Nadu Hotel Owners Association has announced a boycott of mineral water and beverage products manufactured by U.S.-based companies, citing the 50% tariff recently imposed by the Trump administration on Indian exports.  

The association also plans to transition away from international food delivery apps such as Swiggy and Zomato, opting instead for a home-grown platform. 

Association president M. Venkada Subbu told reporters the boycott was a direct response to what he termed unfair trade practices by the U.S. administration. He said hotels would prioritize selling Indian products, with the start date of the boycott to be announced soon. 

“This is the first step. We will implement it here and then take it to an all-India level,” Subbu said. 

He criticized American beverage companies for using Indian resources while repatriating profits. “American beverages are manufactured in India. They are using our water and packaging products, yet the profits flow abroad. That’s why we are against it,” he added. 

India already has a diverse market for home-grown soft drinks, sodas, and bottled water brands. Subbu emphasized that Indian products could easily replace U.S.-manufactured beverages without affecting industry performance.  

“Even better and healthier products are available here. Leading brands like Tata and Reliance are also involved in this sector, so there is no problem,” he said. 

This is not the first time Tamil Nadu has taken action against U.S. beverage companies. In 2016, PepsiCo and Coca-Cola were restricted from using the Thamirabarani River for water supply following a consumer protection lawsuit.  

Although the Madras High Court lifted the restriction in March 2017, trade unions later called for a boycott of both companies. That campaign, however, lost momentum after a few weeks. 

Tamil Nadu, home to 70 million people and one of India’s most prosperous states, has long been a focal point for activism targeting multinational corporations.  

The current boycott reflects broader tensions following the tariff hike by the Trump administration, which is among the highest imposed on any Asian country. 

Meanwhile, in response to the tariff dispute, the Indian government announced sweeping Goods and Services Tax (GST) reforms, reducing rates on essential food items such as coffee from 12%–18% to 5%. The new rates will take effect on September 22, 2025. 

Additionally, a new 40% GST category will apply to non-merit goods such as tobacco and carbonated beverages, classified as “super luxury” and “sin” items, underscoring India’s push to reshape its trade and tax policies amid ongoing global tensions. 

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