Levi’s UK is bracing for a backlash from “values-driven” shoppers who may reject its products based on US politics. The company has officially warned that anti-American sentiment, which it links to the Trump administration, could lead consumers to favor brands more aligned with their political values.
This cautionary outlook accompanies a report of impressive growth, with sales climbing 8.8% to £96.8 million. The warning indicates that the company believes this growth is not guaranteed if the political climate continues to sour perceptions of American brands among UK consumers.
Real-world examples suggest this concern is well-founded. Tesla, a prominent US innovator, saw its UK sales plummet in July, with its market share shrinking significantly. This shows how quickly consumer sentiment can shift and impact the bottom line.
The source of the friction is President Trump’s aggressive trade policy. The policy’s legal standing is now in jeopardy after a federal appeals court ruled it was an overreach of presidential authority. A final decision from the Supreme Court is now anticipated.