With U.S. trade policies shifting, brands are rethinking how they operate. Some are stocking up on products to avoid future price hikes, while others are preparing for disruptions that could affect profits and demand.

Here's what you need to know about how brands are navigating the tariff landscape.

Levi’s boosts inventory to navigate tariff, shipping disruptions

Levi Strauss & Co. is navigating global trade disruptions by boosting inventory and overhauling its supply chain. The company is leaning into a direct-to-consumer model and executing major operational changes to stay resilient. Here's what you need to know:

• Levi’s increased inventory costs by 15% in Q2 to prepare for U.S. tariff uncertainty and Red Sea shipping issues. The company is also stockpiling inventory as a buffer against U.S. tariffs.

• Thanks to mitigation efforts, Levi’s reversed its 2025 forecast from a 1–2% decline to a 1–2% revenue increase, showing growing resilience amid market volatility.

• In an effort to shift to a DTC-first model, the company is consolidating its distribution network. They sold their Ohio facility for $22M and plan on closing their site in Kentucky to shift from an owned and operated distribution model to one that is a mix of owned centers and third-party centers. 

• Levi’s is using targeted pricing, vendor negotiations, and broader supply chain diversification to blunt the financial impact of sustained tariffs.

• The company is also streamlining SKUs and focusing on globally aligned product assortments, which CEO Michelle Gass notes is part of a “massive effort” to elevate efficiency and brand control.

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How Will Trump's Tariffs Impact K-beauty?

K-beauty brands riding high on TikTok virality and growing U.S. retail demand, now face steep challenges as 25% tariffs take effect August 1 under Trump’s new trade policy. Here's what you need to know:

• Korean beauty exports, previously duty-free under the 2012 Korea Free Trade Agreement, will now face steep 25% tariffs, putting pressure on pricing, supply chains, and consumer demand.

• Beauty of Joseon grew from $31M (2020) to $100M+ (2023) and is entering Sephora. Ulta is onboarding 13 new K-beauty brands this summer. TikTok virality has fueled this momentum. Medicube ranked #2 on TikTok Shop with $4.1M in May sales, according to Charm.io.

• Stores like Senti Senti must now front-load more inventory (despite high storage costs in NYC) as increased tariffs threaten accessibility.

• While brands like Medicube may avoid major retail price jumps due to low production costs, others warn that tariff-driven increases are “the last resort” but may still hit U.S. shoppers.

• Executives from brands like Sungboon Editor Skincare argue that K-beauty’s global strength lies in product innovation and trend responsiveness—qualities that can result in consumer trust and loyalty regardless of tariff pressures.

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The Data Behind Levi Strauss & Co. Brands

Levi Strauss & Co. demonstrates the value of early planning in times of uncertainty. By building inventory ahead of tariff risks, the company is protecting its pricing power and showing clear control over its supply chain strategy. 

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