US scrutiny of Bangladesh’s apparel supply chains and the prospect of an extra 10% US tariff, lifting total duties to around 29%, is a clear reminder that policy risk can hit margins as hard as any recession. For investors, the question is which stocks are most exposed to this tariff and compliance overhang, and whether that risk is already reflected in prices. This article highlights three stocks from the Bangladesh Apparel Exposure Stocks Facing US Tariff Risk screener that could be negatively affected, helping you decide whether these risks fit your portfolio’s appetite for trade and regulatory uncertainty.

Levi Strauss (LEVI)

Overview: Levi Strauss is a global apparel company best known for its Levi's jeans, selling a wide range of clothing and accessories for men, women, and children through third party retailers and its own stores and e-commerce channels.

Operations: Levi Strauss generates most of its revenue from Levi’s branded products, with about US$3.4b from the Americas, US$1.8b from Europe, US$1.2b from Asia, and US$159.4m from Beyond Yoga and unallocated segments.

Market Cap: US$9.25b

Levi Strauss offers investors a mix of strong brand power and uncomfortable risk as US scrutiny of Bangladesh apparel sourcing intensifies. The company is leaning into higher margin direct-to-consumer sales and premium products. However, heavy exposure to factories in Bangladesh means a potential 29% US tariff and tighter forced labor rules could squeeze margins and test its ability to shift production at scale, despite claims of an agile 28 country sourcing network. High quality earnings, robust ROE and recent share buybacks signal confidence, but significant insider selling, elevated funding risk and an unstable dividend record raise questions about how resilient Levi Strauss really is if tariff costs increase and growth expectations do not materialize.

Levi Strauss’ brand strength and buybacks may be masking how exposed its margins are to tariff shocks and funding pressure, so it is worth reviewing the 4 key rewards and 2 important warning signs.

PVH (PVH)

Overview: PVH Corp. is a global apparel company behind the Calvin Klein and Tommy Hilfiger brands, designing and selling clothing, footwear, accessories and related products across wholesale, company operated stores and digital channels worldwide.

Operations: PVH generates most of its revenue from EMEA at about US$4.3b, followed by the Americas at about US$2.7b, Asia Pacific at about US$1.6b and licensing income of about US$414.5m.

Market Cap: US$3.84b

PVH provides exposure to two global fashion brands with broad reach. However, it sits in the crosshairs of the Bangladesh tariff story and has already indicated that US trade measures are a headwind for earnings. Management has discussed absorbing higher US tariffs in 2025 and 2026, while also dealing with weaker demand in EMEA, low net margins of 1.8% and a reliance on external borrowing that raises funding risk if conditions tighten. At the same time, the stock trades at what some analysis views as a discount and tariff refunds have provided an earnings cushion. This makes recent insider selling and cautious guidance more important to understand before deciding whether PVH fits your risk tolerance around trade and brand execution.

PVH’s tariff refunds and low 1.8% net margins could be masking pressure that has not fully filtered into expectations yet. Before assuming the risk is priced in, review the 3 key rewards and 2 important warning signs

Gildan Activewear (TSX:GIL)

Overview: Gildan Activewear is a Montreal based apparel manufacturer that supplies mass market T shirts, fleece, underwear, socks and intimatewear under a wide portfolio of brands to wholesalers, retailers and lifestyle partners across North America, Europe, Asia Pacific and Latin America.

Operations: Gildan Activewear generates about US$4.1b from apparel, with around US$3.7b from the United States, US$122m from Canada and US$261m from international markets.

Market Cap: CA$16.0b

Gildan Activewear is sometimes viewed as a Bangladesh tariff story in disguise, combining an efficient, vertically integrated supply chain with extensive use of low cost Bangladesh production that could come under pressure if US tariffs increase to around 29% and compliance demands rise. The company highlights cost advantages, use of US cotton and the ability to shift volume into Central America. However, recent earnings volatility, a large one off loss of US$314.2m, an unstable dividend record and significant insider selling point to execution and governance questions that investors may wish to consider. With short sellers questioning revenue quality and the board still bedding in, a key issue is whether Gildan’s low cost model and brand portfolio can offset higher tariff and ESG scrutiny in an environment where sentiment could become more cautious on the stock.

Gildan Activewear’s low cost model and reliance on Bangladesh may be masking larger tariff and governance risks that are only starting to surface. Review the 3 key rewards and 6 important warning signs (1 is major!) for more details.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.