Levi's, Nike, Patagonia: 7 big brands that could get more expensive under Trump tariffs
Under a Donald Trump presidency, a proposed 25% tariff on Mexican imports could lead to significant price increases on popular clothing brands. Companies such as Levi’s, Nike (NKE), and Patagonia, which source a portion of their products from Mexico, may have no choice but to pass those costs onto consumers.
While some U.S. manufacturers stand to gain from such tariffs, the overall impact could be detrimental to consumers. The proposed tariffs could reduce American spending power by an estimated $46 billion to $78 billion annually, according to the National Retail Federation (NRF). For example, the price of athletic shoes could increase from $50 to as much as $64.
The retail sector is already grappling with supply chain disruptions and rising operational costs, and additional tariffs could further squeeze consumers’ wallets.
During his presidency, Trump imposed tariffs on various imports, particularly from China, but did not enact a blanket tariff specifically targeting Mexican imports. Instead, his administration focused on renegotiating trade agreements, such as the United States-Mexico-Canada Agreement (USMCA), to alter trade dynamics with Mexico.
If tariffs were to return, it could potentially lead to decreased consumer spending as shoppers navigate rising costs. Ahead of the presidential election, we’ve compiled a list of seven major clothing brands that could see price increases if a tariff were imposed on Mexican imports with an example of an item that could possibly be hiked.
1. Levi’s
Known for its iconic denim, Levi’s produces a wide range of jeans, jackets, and casual apparel. Popular items such as the 501 jeans are produced in Mexico.
Trump tariff costs of Levi’s jeans: $79.50 pants would cost $99.38.
2. Nike
Athletic giant Nike manufactures a variety of its products in Mexico, including running shoes, workout gear, and athletic clothing.
Trump tariff costs on Nike sneakers: $150 shoes would cost $187.50.
3. Adidas
Similar to Nike, Adidas (ADDYY) has manufacturing operations in Mexico for some of its footwear and apparel, including popular shoes such as the Ultraboost and the company’s NMD lines.
Trump tariff costs on Adidas Ultraboost: $135 sneakers would cost $168.75.
4. Patagonia
The outdoor clothing brand sources some of its products from Mexico, particularly its outdoor clothing line, which includes fleece jackets and outdoor gear.
Trump tariff costs on a Patagonia puffer jacket: A $240 coat would cost $300.
5. New Balance
New Balance has a mixed manufacturing strategy, producing some shoes domestically while also importing some from Mexico and other countries.
Trump tariff costs on New Balance 530: A $100 pair of shoes would cost $125.
6. Tecovas
Tecovas produces many of its boots in Mexico, particularly from the region in Leon. The brand imports these boots regularly.
Trump tariff costs on Tecovas cowboy boots: A $345 pair would cost $431.25.
7. American Eagle Outfitters
Despite its name, American Eagle Outfitters (AEO) imports a large volume of items such as jeans, T-shirts, and hoodies. Much of the company’s denim production takes place in Mexico, particularly for the AE jeans line.
Trump tariff costs on AE jeans: A $42 pair of jeans would cost $52.50.
