Levi’s has voiced a significant worry: that ‘Brand America’ itself is becoming toxic for UK consumers. In a formal warning, the company stated that “rising anti-Americanism” linked to Trump’s policies could cause shoppers to deliberately choose European products over its iconic denim.
This stark assessment was included in its UK financial filing, which otherwise detailed a successful year with sales up 8.8% and profits climbing 23%. The company is clearly concerned that the political reputation of its home country could start to override its own brand reputation.
Evidence from other sectors suggests this toxicity is a real threat. The US electric car brand Tesla experienced a dramatic sales drop in the UK in July, with its market share shrinking significantly. This points to a potential vulnerability for all high-profile American brands.
The source of the toxicity is the Trump administration’s aggressive tariff strategy, which has alienated many traditional allies. The legal foundation for this strategy is now being challenged, with a federal court ruling against the administration. The case is now likely headed for the Supreme Court.