Strong Sales Can’t Quell Levi’s Fears of a ‘Trump Slump’ in Britain

Even a year of strong sales and soaring profits can’t quell Levi’s fears of a potential ‘Trump Slump’ in Britain. The company’s UK arm has formally warned that “rising anti-Americanism” stemming from the US administration’s policies could negatively impact its business as shoppers may turn to non-American brands.
The warning was a notable part of its latest financial accounts, which also highlighted a successful year with a 23% rise in pre-tax profits to £9.6 million. This proactive statement from a major consumer brand shows a growing anxiety that a company’s national identity can become a significant factor in its international success.
Recent market data lends credibility to these concerns. Sales for the American electric car company Tesla were more than halved in the UK in July, a significant blow. This suggests that a brand’s country of origin, and the politics associated with it, may indeed be influencing purchasing decisions.
This consumer sentiment is unfolding against the backdrop of a global trade war initiated by President Trump. His administration’s use of tariffs is now facing a serious legal challenge, with a federal appeals court having ruled them mostly illegal. The ultimate decision on the President’s trade powers is likely to be made by the Supreme Court.