New US tariff policy is back in focus, with temporary 10% duties set to expire and a fresh round of Section 301 tariffs expected to follow on goods from 59 countries, including China and the EU. For investors, the key issue is how higher import costs, weaker front-loaded volumes, and unclear exemptions could squeeze profit margins for companies built on global sourcing. This article breaks down 3 stocks that appear more exposed to these trade policy shifts and aims to help you evaluate which tariff sensitive stocks might warrant extra caution on your watchlist right now.

Levi Strauss (LEVI)

Overview: Levi Strauss & Co. is a global apparel company best known for Levi's jeans, selling denim and lifestyle clothing for men, women, and children through a mix of wholesale partners, brand-dedicated stores, and its own e-commerce sites across major regions.

Operations: Levi Strauss generates most of its revenue from Levi’s branded apparel in the Americas at about US$3.4b, followed by Europe at roughly US$1.8b, Asia at about US$1.2b, and around US$165m from Beyond Yoga and other unallocated sources.

Market Cap: US$9.37b

Levi Strauss might look interesting at a headline level, with a lower P/E than many luxury peers, high returns on equity, and improving margins. However, the tariff story makes the risk side hard to ignore. Management is already assuming steep extra tariffs on goods from China and the rest of the world, with commentary pointing to a meaningful hit to gross margins and earnings even after mitigation efforts like price increases, vendor talks, and supply chain tweaks. At the same time, the company is leaning heavily on its core Levi’s brand and on international growth, while global trade frictions and higher import costs threaten to compress the very profitability investors are paying for.

Levi Strauss is leaning harder on pricing and margin stories just as tariff pressure is building. This raises a simple question for investors: what is hiding beneath the headline numbers in the analysis report for Levi Strauss?

PVH (PVH)

Overview: PVH is a global apparel company behind Calvin Klein and Tommy Hilfiger, designing and selling clothing, underwear, accessories, and related products across wholesale, retail, and digital channels in the US and international markets.

Operations: PVH generates its revenue across regions and channels, with about US$2.7b from the Americas, US$4.3b from Europe, the Middle East and Africa, roughly US$1.6b from Asia-Pacific, and around US$415m from licensing.

Market Cap: US$3.60b

PVH has several points of interest, including analysts expecting earnings to grow faster than revenue and a discounted cash flow estimate that sits well above the current share price. However, the picture becomes less comfortable once tariffs and recent downgrades are factored in. Management is already baking in roughly US$195m of gross tariff costs and an unmitigated EBIT hit of about US$65m in 2025. In addition, Bank of America has twice cut its rating and price target on concerns about heavy EMEA exposure, flat EBIT margins, and softer European demand. When combined with low net margins of 1.8%, reliance on external borrowing, and a relatively new leadership team, PVH can appear to be a brand powerhouse where tariff policy and execution risks may weigh more heavily than the headline valuation suggests.

PVH’s tariff bill, thin 1.8% net margins, and heavy EMEA exposure could be masking deeper pressure on its earnings power. Before assuming the discount is harmless, review the 2 key rewards and 1 important warning sign

Walmart (WMT)

Overview: Walmart is a global retailer that runs supermarkets, supercenters, Sam’s Club warehouse stores and ecommerce platforms offering groceries, household goods, apparel, electronics, health services and financial products to consumers worldwide.

Operations: Walmart generates most of its revenue from Walmart U.S. at about US$490.9b, followed by Walmart International at roughly US$137.4b, Sam’s Club at about US$97.0b, and around US$72m from corporate and support.

Market Cap: US$909.1b

Walmart might look like a defensive giant with high earnings quality, a P/E that reflects investor confidence, and growing contributions from higher margin areas like advertising, memberships and ecommerce. However, the tariff story makes the downside harder to ignore. Management has openly flagged that for the less than one third of U.S. sales that are imported, sourcing from China and other tariff hit countries is already putting cost pressure on goods, and a fresh wave of Section 301 measures could squeeze margins just as the company is cutting prices across thousands of grocery items. Add in high leverage, insider selling, and leadership changes inside Walmart U.S., and this tariff sensitive stock starts to look less like a safe harbor and more like a premium asset where execution risk is building.

Walmart’s tariff-exposed imports, price cuts across groceries, and high leverage could be masking where the real pressure lands on profits next. Review the analysis report for Walmart to see what might be shifting under the surface

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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.