Levi’s UK is asking a big question: is Brand USA in trouble? The company has expressed formal concern that its sales could be hit by a backlash against American products, which it links to the policies of the Trump administration.
The warning was part of the company’s annual filing, a document that also celebrated a successful year with an 8.8% increase in sales. The company’s fear is that the political reputation of the US could begin to negatively influence the commercial reputation of its most famous brands.
There are signs that this is already happening. Sales for the American electric car maker Tesla plummeted in the UK in July. In Canada, consumer activism has led to boycotts of US goods, with shoppers going to great lengths to identify and avoid products with American parent companies.
The trouble for Brand USA stems from the Trump administration’s aggressive trade policies. The legality of the tariffs used in these policies has been successfully challenged in a federal appeals court, a decision that is now likely to be appealed to the Supreme Court, creating further uncertainty.