While celebrating a banner year with sales up 8.8% and profits soaring 23%, Levi’s UK division has injected a dose of caution into its success story. In its annual accounts, the company warned that the political climate created by the Trump administration could fuel “rising anti-Americanism” and potentially damage its standing with British consumers.
The core of the concern, as detailed in the filing, is the risk that UK shoppers might develop a preference for “national or European” products as a reaction against US governmental policies. This places a political cloud over an otherwise bright financial report, where sales reached £96.8 million and pre-tax profits hit £9.6 million.
Evidence from other sectors suggests this is a valid concern. Tesla, a prominent US tech brand, saw its UK sales collapse in July, with its market share shrinking dramatically. This sharp decline hints at a vulnerability for American brands when political tensions are high. Similar consumer movements have been observed in Canada, where shoppers are actively avoiding US-derived goods.
The trigger for this global friction has been President Trump’s aggressive trade strategy, imposing tariffs on allies and adversaries alike. The legality of this approach is now being contested in the US courts. A federal appeals court recently ruled that the tariffs were largely unlawful, a judgment that could lead to a landmark Supreme Court case on the limits of presidential authority.