Consumer Headlines: Tariffs on clothing, grocery stockpiles and Levi’s profits

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Consumer Headlines: Tariffs on clothes, groceries and impact on Levi’s brand

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ROCHESTER, N.Y. – Clothing manufacturers are responding cautiously to tariffs affecting overseas production. Many have implemented hiring freezes and are delaying new orders.

97% of clothes and shoes are manufactured overseas, primarily in China, Vietnam, and Bangladesh, which have been hit with significant tariffs. The tariff on China is 54% , 46% on Vietnam, and 37% on Bangladesh. For example, Jordans, often made in Vietnam, could see price increases. Men’s Jordans, typically retailing for $180, may rise to $255, while kids’ Jordans could increase from $140 to about $200, according to the Footwear Distributors of America.

Some consumers are stockpiling groceries to get ahead of the tariffs. Shoppers are buying canned and dry goods from warehouses like Costco and BJ’s, Reuters reported. However, experts warn that stockpiling can lead to product shortages and empty shelves.

Despite tariff concerns, Levi’s reported quarterly profits exceeding Wall Street expectations. Levi’s has a diverse supply chain, with only 1% of its merchandise coming from China and 5% from Mexico. The company manufactures in 15 different countries. Levi’s CEO said price hikes will be surgical, meaning they will be carefully applied to smaller sectors.

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