Geopolitical tremors originating from Washington D.C. are being felt by Levi’s in the UK. The company has issued a formal warning that the fallout from the Trump administration’s policies, including “rising anti-Americanism,” could negatively impact its sales as British consumers may start favouring non-US brands.
This concern was explicitly stated in the company’s UK financial accounts, which were filed recently. The warning casts a shadow over a strong performance that saw sales increase by 8.8% and pre-tax profits jump by 23%. It signals that global brands are increasingly wary of being caught in political crosscurrents.
The heat is already on for some American companies. Electric vehicle maker Tesla experienced a severe sales drop in the UK in July, with its market share shrinking significantly. This provides a tangible example of the commercial risks associated with a brand’s national identity in a tense political climate.
The source of the tremors is the Trump administration’s aggressive trade war, which has disrupted international commerce. The legal foundation of this war is now being tested, with a federal appeals court ruling that the tariffs are mostly illegal. The final verdict on this critical issue is expected to come from the Supreme Court.