As the EU imposes counter tariffs on American denim, the US side of the industry remains on edge. However, large companies such as Levi’s and True Religion, as American as they seem, actually create the largest portion of their goods overseas. The EU tariffs affect US-manufactured goods only. Levi’s sources products from 26 countries to service 110 countries around the world. Levi’s feels this diversifies their source base and spreads the supply chain. The brand is an American business but with an international footprint.

The same goes for True Religion, a brand with entirely American roots that moved production to Turkey long ago. The counter tariffs do not affect True Religion since it does not produce denim in the USA anymore. And it’s the smaller American denim labels that are still producing entirely in the US but selling overseas that are left facing a challenge that could cost them their entire European market share.

However, the mood is definitely tense. Apparel imports were already taxed high before the trade standoff, so the additional 10 per cent import tax on everything coming into the US from China, like apparel and textile and apparel production machinery, coupled with the 25 per cent tariff China has placed on raw cotton imports from the US, could have a serious impact on prices for both brands and consumers.