Levi’s has issued a warning that rising anti-American sentiment in the UK, fueled by the Trump administration’s policies, could negatively impact its sales.
The company, which distributes Levi’s and Dockers clothing brands, reported an 8.8% increase in sales to £96.8m and a 23% rise in pre-tax profits to £9.6m in its UK accounts.
However, it noted that changing sentiment towards US brands could lead to shoppers developing an “increasing willingness” to choose more “national or European” products.
This warning comes as one of the first US brands to openly raise concerns about the impact of the Trump administration on sales. Tesla, led by Elon Musk, has already seen a significant decline in UK sales, with its market share more than halving in July.
Similarly, in Canada, protests against US-derived goods have led to a slump in sales of Jack Daniel’s whiskey, with many retailers removing it from their shelves.
The Trump administration’s “liberation day” tariffs, which set a 10% baseline on virtually all US trading partners, have sent shockwaves through global trade.
A federal appeals court in Washington DC recently ruled that most of these tariff policies were illegal, a decision that will not take effect until October 14. This ruling is likely to lead to a Supreme Court decision on whether Trump has the legal right to decide US trade policy.
Levi’s UK arm, which employs over 1,600 people, faces challenges not only from changing consumer sentiment but also from competition from retailer own-label products and pressure on department store stockists from online competition and inflexible rents.
The company noted that apparel brands are competing with “more basic needs” and high inflation has a direct impact on consumers’ willingness and ability to spend on apparel and fashion products.
The potential shift in consumer behavior towards US brands could have significant implications for Levi’s and other US companies operating in the UK.
As consumers become increasingly willing to choose national or European products, companies like Levi’s may need to adapt their strategies to maintain market share.
Despite the potential challenges, Levi’s continues to offer a wide range of products, including its iconic 501 jeans, 511 slim fit jeans, and 502 taper jeans.
The company provides discounts and promotions, such as up to 50% off selected items, and offers free express shipping and return policies. Levi’s also has a loyalty program, the Levi’s Red Tab Member Program, which rewards customers for their purchases.