National Interest versus Global Brands: The Impact of Tariff on Brand Switching Behavior

The United States’ imposition of high tariffs on Chinese products has not only reshaped global trade dynamics but also provoked significant consumer responses at the grassroots level in China. This study examines how Chinese consumers interpret and respond to these tariff measures, particularly in terms of attitudes toward domestic products, tariff awareness, media exposure, perceptions of fairness in trade, ethnocentrism, and brand-switching behavior. Using a structured survey of Chinese consumers and employing confirmatory factor analysis (CFA) alongside structural equation modeling (SEM), we assessed both the measurement and structural model fit. Reliability and validity tests confirmed the robustness of the constructs, while the Fornell-Larcker criterion established strong discriminant validity. Path analysis revealed that knowledge of tariffs significantly influenced ethnocentric consumers’ attitudes, but not their feelings toward Chinese goods. Exposure to media and ideas of fairness in trade are strong factors in both ethnocentrism and consumer attitudes. This shows how important information framing and perceptions of justice are in molding how people act as consumers. Furthermore, consumer ethnocentrism and positive attitudes toward Chinese products strongly predicted brand switching, suggesting a shift away from foreign products toward domestic alternatives in response to U.S. tariff pressures. This research contributes to understanding how macro-level trade policies translate into micro-level consumer reactions, particularly in a politically charged trade-war context. The results show that tariffs can make people more nationalistic, ethnocentric, and loyal to brands, helping politicians and businesses navigate the unpredictable world of international trade and consumer behavior. JEL Classification: A10; B17; B27; C12; M31