Navigating the Tariff Storm: Levi's Strategic Moves

The fashion world is in a tough spot right now. Tariffs on clothes and shoes have shot up, making things really hard for businesses. At first, they were around 13%, but then they jumped to 54% in April 2025. Even though they dropped a bit later, they're still much higher than usual, sitting at 36% for the top 10 importers. This big change is shaking up the industry, and many executives think handling these tariffs will be the biggest challenge in 2026. The fashion industry has changed a lot since 2016. Now, people care about buying used clothes, feeling good about their purchases, and how AI is changing shopping. Brands are trying to deal with these tariffs by changing prices, moving where they get their products from, and working more efficiently. Big suppliers are trying to adapt, while smaller ones are struggling. Levi's, a big name in denim, has some advantages. About 60% of their business is outside the U. S. , so they're not hit as hard by the tariffs. But even they have to make big changes. Their CEO, Michelle Gass, says the situation is really complicated. She knows they can't absorb all the extra costs, so they have to pass some of them on to customers. Levi's is handling this in a few ways. They're raising prices carefully, cutting back on big sales, and focusing on new products that people might pay more for. They're also working on making their business simpler and more efficient. For example, they're making more of their products available in all their stores worldwide, which helps them save money. All these changes are paying off. Levi's sales went up by 7% in October 2025, and they're expecting to keep growing. But they know the tariffs will still hurt their profits a bit. Other companies are also trying to adapt. Some are moving where they get their products from to avoid the worst of the tariffs. But Levi's thinks the key is working closely with their suppliers. They talk to them all the time to stay flexible and ready for whatever comes next.