Levi’s is worried about a potential “guilt by association” effect in the UK market. The company has stated that its association with the US, under the Trump administration, could lead to “rising anti-Americanism” and cause British consumers to look elsewhere for their denim.
The warning comes amidst an otherwise glowing report, with sales climbing 8.8% to £96.8 million and pre-tax profits up 23%. This juxtaposition highlights the company’s concern that its strong market position is not immune to the influence of international politics on consumer behavior.
The potential for such an effect is already visible elsewhere. Tesla, another prominent American brand, saw its UK sales more than halve in July, a dramatic downturn. This suggests that a brand’s national identity is becoming an increasingly important factor for some consumers.
The political tensions are a direct result of the Trump administration’s protectionist trade policies. These tariffs have been highly controversial and now face a robust legal challenge. A recent federal court ruling found them to be largely illegal, a decision that will likely be appealed to the Supreme Court.