Levi's Confirms the News About Donald Trump and Issues an Urgent Statement in the United States

Levi Strauss & Co., known for its iconic Levi's brand, has shown once again its resilience in times of economic uncertainty. Despite concerns about the increase in U.S. tariffs under Donald Trump's administration, the company has kept its growth projections for the fiscal year 2025. Although the tariffs could put pressure on the production costs of its products, the brand assures that no significant negative impact is expected on its business.

Moderate Impact of Tariffs on Levi's

Despite the concern about tariffs, Levi's has minimized the effects they will have on its pricing strategy. "We don't believe there will be a significant worsening of the macroeconomic situation, supply chain disruptions, or tariffs," commented Michelle Gass, the company's CEO. The company has indicated that the tariffs will have a "minimal impact" in the current quarter, given that most of its product is already in the United States.

Seventy-five percent of Levi's products sold in the United States are produced locally, which helps significantly reduce the brand's exposure to tariffs. However, some imported products, such as seasonal items, could see price adjustments due to the tariff increase. Gass added that the company is studying the tariffs "urgently," but without making hasty moves.

Experts' Analysis: Uncertainty About Long-Term Effects

Despite Levi's cautious strategy, analysts have shown concern about the long-term impact of the tariffs on the company. Jim Duffy, an analyst at Stifel, indicated that "the uncertainty about the tariffs continues to weigh on Levi's prospects." Although Levi's has kept its growth focus, tariffs are expected to affect the company's profits starting in 2026.

However, not all analysts are as concerned. Matthew Boss from JP Morgan has highlighted that the stock price has fallen in recent months and that Levi's has the potential to adjust prices.

Levi's on the Path to Selling Premium Products

The Levi's brand has observed a shift in consumer preferences. With a renewed focus on premium products, Levi's has increased its offering of more expensive items. For example, women's 501 jeans and vintage jackets, which can cost up to 600 euros.

Gass explained that the company might opt for "surgical" price increases, focusing on products that have had greater acceptance among buyers. Levi's is also investing in strengthening its core brand and its direct sales channels, such as its physical stores and online platform. The brand expects this to boost sales and allow for a greater connection with its customers, without relying too much on changes in the international supply chain.