Trump tariffs: Levi's UK flags 'anti-American' risk

Levi's UK has identified a potential threat to its business in the form of "rising Anti-Americanism" stemming from Trump Tariffs and other U.S. governmental policies. The company fears that this sentiment could cause consumers to shift their preferences away from U.S. brands, opting instead for "national / European products". This concern, expressed in its strategic report, is listed as a key risk alongside other market challenges.

Despite these fears, Levi's UK reported strong financial results for the year ended November 30, 2024. The company's turnover increased by 8.8 percent to 96.8 million pounds, and pre-tax profits rose by 23 percent to 9.6 million pounds. The company stated that the Levi's brand "retained its attractiveness despite a tense consumer climate and declining customer frequency in the retail sector".

However, the company also noted that "store traffic has been flattish overall or even in decline". The report also reveals a decrease in employee headcount, with the average number of employees falling from 1,857 in 2023 to 1,630 in 2024, a reduction of over 200 jobs. The company attributes this to a rise in minimum wages, which put "pressure on companies' profits".

Levi's UK warns about anto-American sentiment

The company's warning about anti-American sentiment reflects broader global reactions to aggressive U.S. trade policies. The document mentions that geopolitical tensions, such as the war in Ukraine, have already caused supply chain disruptions, necessitating the rerouting of ships and leading to increased costs and delays. While the company has found ways to mitigate these specific risks, the political risk of consumer sentiment turning against American brands remains a significant, though currently unquantified, threat.

The report's warning about anti-Americanism is a striking admission, as it directly links U.S. governmental policy to a potential risk for a U.S. brand overseas. This is a critical departure from purely economic or competitive risks. The company's stated profit and revenue increases suggest that any anti-American sentiment had not yet had a material impact at the time of the report. The warning seems to be more of a forward-looking risk assessment, anticipating a possible future shift in consumer behaviour rather than reporting on a current trend.

Countries express concern over Trump's trade policies

The concerns voiced by Levi's are not isolated. The Trump administration's aggressive trade policies, including the attempted implementation of "Liberation Day" levies, sparked a global backlash. Although a U.S. Court of Appeals ultimately ruled these tariffs illegal, their very announcement and the surrounding rhetoric were enough to cause a ripple effect.

In countries such as Canada and India, consumers began boycotting U.S.-made goods in favour of local alternatives, indicating a tangible link between political actions and consumer behaviour.