Levi Strauss & Co (NYSE: LEVI) shares plunged 5.54% in pre-market trading on Monday, as investors reacted to a combination of factors including new U.S. tariffs, an analyst downgrade, and caution ahead of the company's earnings report.

The sharp decline comes as Citigroup cut its price target for Levi Strauss from $19 to $14, citing concerns about the impact of the sweeping new U.S. tariff plan on apparel companies. Analysts at Citi noted that most apparel products are sourced from Asia, making the sector particularly vulnerable to the proposed tariffs. They expressed doubts about companies' ability to offset an assumed 30% blended tariff rate through pricing power, suggesting that attempts to raise prices could result in weaker demand.

Adding to the pressure on Levi's stock is the overall negative market sentiment, with major U.S. stock indices pointing to further losses following last week's tariff-induced selloff. Investors are also likely exercising caution ahead of Levi Strauss's quarterly earnings report, scheduled for release after the market close today. Wall Street expects the company to report earnings of 28 cents per share on revenue of $1.54 billion.

As the market grapples with the potential economic impact of President Trump's tariff policies, apparel manufacturers like Levi Strauss find themselves at the forefront of investor concerns. The company's performance in today's trading session and its upcoming earnings report will be closely watched for insights into how the denim giant is navigating these challenging market conditions.