Levi Strauss & Co. CEO Michelle Gass recently addressed concerns about potential price hikes due to President Donald Trump’s tariffs, stating that any increases would be implemented in a “surgical” manner. During an earnings call, Gass emphasized that the situation surrounding tariffs is still evolving, and the company is actively assessing the best approach to navigate through it.
Gass, who took over as CEO in 2024 amidst the company’s efforts to enhance profitability, highlighted the brand’s pricing power and the need for strategic decision-making in response to tariff-related challenges. She refrained from providing specific details on the extent of the price adjustments but assured that they would be carefully considered.
The retail giant introduced Project Fuel, a comprehensive global productivity initiative aimed at revitalizing the business and streamlining operations. As part of this initiative, Levi Strauss & Co. has already implemented workforce reductions at its California office, with potential further changes on the horizon.
In light of the impact of tariffs on the company’s supply chain, Gass mentioned the formation of a task force to evaluate various scenarios and devise mitigation strategies. Despite sourcing from 28 countries, including 20 that export to the U.S., Gass expressed confidence in the company’s agile supply chain capabilities to address challenges effectively.
The broader business community has expressed concerns over the repercussions of tariffs on the U.S. economy. BlackRock CEO Larry Fink warned of potential market declines due to tariff uncertainty, with some CEOs suggesting that the economy may already be in a recession. JPMorgan Chase CEO Jamie Dimon echoed these sentiments, emphasizing the inflationary pressures and economic alliance implications of tariff implementation.
As the situation continues to evolve, Levi Strauss & Co. remains committed to navigating the challenges posed by tariffs while maintaining a focus on strategic decision-making and sustainable business practices.
