Levi's jeans risk becoming more expensive as the US imposes new tariffs on imported goods

New tariffs hit back at the US – iPhone, jeans and fast food are threatened

2025-04-04

The new US tariffs are intended to protect American jobs and businesses. But according to several experts and business leaders, they risk backfiring – against American brands. Iconic products like the iPhone, Levi's and McDonald's are expected to become more expensive both at home and abroad. At the same time, economists warn that the US's global influence could decline.

iPhone – from icon to luxury item

Apple's iPhone is largely manufactured in China, which is now subject to a 54% tariff. If the entire cost is passed on to the consumer, the price of a new iPhone could increase by 30-40%. A model that currently costs around 1600 USD could end up around 2300 USDAnalysts warn that Apple could lose up to $40 billion USD in revenue if the situation continues.

Apple has previously been granted exemptions in trade disputes – but not this time. The company is now considering moving production to Vietnam and India, both of which are also hit by high tariffs. Apple has not commented officially, but its stock has fallen sharply.

New US tariffs could lead to more expensive iPhones and MacBooks even at home — Apple is one of the largest technology companies in the United States. But because manufacturing takes place in Asia, the tariffs could backfire on American consumers.

Clothing and shoes – Levi's and Nike have to pay the price

Levi's manufactures many of its jeans in low-cost countries. With new tariffs, both imports and exports risk becoming more expensive. At the same time, the EU has previously considered countermeasures targeting American jeans, peanut butter and whiskey.

Nike, which produces many of its shoes in Vietnam, is also being hit hard. The tariff on Vietnamese goods is 46%. The company's stock fell 14% after the announcement - an indication of how the market is viewing the consequences.

Food and drink – fast food under pressure

American fast food chains and beverage companies are indirectly affected. Coca-Cola has already flagged that the price of aluminum cans will increase sharply after previous tariffs. Starbucks and McDonald's, which rely on imported raw materials, could also see their margins shrink – and customer prices increase.

If other countries choose to respond with their own tariffs, exports could decline further. During the last trade conflict, food was one of the first areas where other countries hit back.

Cars and motorcycles – old wounds are torn open

The automotive industry is another sector that is directly affected. Harley-Davidson already faced sharply increased tariffs in the EU in 2018 in response to US steel tariffs. Now there are signs that similar retaliation could happen again.

General Motors has signaled that it may need to shift production to the US – something that will cost both time and money. At the same time, American cars could become too expensive abroad and too expensive at home.

Tech giants and services – global impact

Major US companies such as Microsoft, Google and Meta are being affected by increased supply chain costs. China has already responded with countermeasures, including blacklisting US companies and export restrictions on key metals.

Streaming services, credit cards and e-commerce platforms also risk facing increased competition or barriers in other countries. Netflix, Amazon and Visa are examples of companies that depend on an open global system.

A blow to American brands

Several governments, including the EU and Canada, have expressed concern that the US's unilateral actions are undermining cooperation in world trade. The IMF warns that the tariffs could contribute to a global recession.

In the long run, this could erode America's soft power – that is, the trust and attractiveness of American goods, culture and companies.

Comment: When reality bites back

It could almost be satire: a trading program launched with the headline Make America Wealthy Again, but which in just one day triggers a stock market crash that makes Americans 30000 billion kronor poorer.

Or that the tariff figures were calculated using such a vague and unclear method that no one can really explain how 90% became 90%. When even uninhabited islands risk punitive tariffs, it's hard not to wonder: who is pointing the gun – and in what direction?

But this is not a joke. It's reality.

And while some in the White House may hope that other countries will beg nicely to avoid tariffs, few appreciate being invited to negotiate by someone brandishing a shotgun.

The question is not just whether this is bad policy – but whether it is in practice a form of economic self-interest. And while the US stands to lose a lot from this, other countries – like Thailand, Laos, Vietnam – risk being hit hard by something they never asked for.

Sources: Reuters, TT/AFP, Macworld, Ekonomibladet, Bloomberg, IMF, PIIE, etc.