Levi’s has warned that “rising anti-Americanism as a consequence of the Trump tariffs and governmental policies” could drive British shoppers away from its denim.
The company, which distributes Levi’s and Dockers clothing brands, issued the warning in its UK accounts, where it reported sales had risen 8.8% to £96.8m and pre-tax profits were up 23% to £9.6m. It said the Levi’s brand had “retained its attractiveness despite a tense consumer climate and declining customer frequency in the retail sector”.
However, the accounts recently filed at Companies House listed one of its key risks and uncertainties was potentially changing sentiment towards US brands that could lead shoppers to develop “increasing willingness” to choose more “national or European” products.
The risk was listed alongside other issues including competition from retailer’s own-label products and pressure on its department store stockists from “increased online competition and inflexible rents”.
It said apparel brands were also competing with “more basic needs” and there was a risk that high inflation “has a direct impact on the willingness and ability of consumer to spend their reduced available money in apparel and fashion products”.
Levi’s UK arm, which employs just over 1,600 people in the UK according to the accounts, is one of the first US brands to openly raise fears about the impact of the Trump administration on sales, in comments first reported by the Daily Telegraph.
One brand that has clearly suffered in the UK is Tesla, which is led by Donald Trump’s former right-hand man Elon Musk. Tesla sales in the UK more than halved in July, according to data from the main industry body. The electric vehicle brand’s UK market share shrank to 0.7% in July, from 1.67% a year ago.
In Canada, protests against US-derived goods has been blamed for a slump in sales of Jack Daniel’s whiskey, which many retailers have removed from their shelves.
There have been reports of Canadian shoppers turning US-made or owned products upside down in stores so they can be identified and avoided by fellow shoppers. The Maple Scan app also helps Canadians check barcodes to see if grocery purchases have parent companies in the US.
Trump has sent shock waves through global trade with his “liberation day” tariffs that set a 10% baseline on virtually all of the US’s trading partners, and were topped up with “reciprocal” tariffs on countries he has argued have unfairly treated the US.
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A federal appeals court in Washington DC ruled on Friday that most of the tariff policies were illegal in a ruling that will not take effect until 14 October.
The judgment is likely to lead to a supreme court decision on whether Trump has the legal right as president to decide US trade policy.