Donald Trump keeps threatening the rest of the globe with his favorite phrase, tariffs, but this time it could end up impacting the giant sports brand Nike. The president himself is determined to impose higher prices on his citizens, even though many Americans have now realized the truth of tariffs and that we will all be responsible for paying for them. Even though equities in the tech, automotive, and other sectors have declined, the former reality TV star’s most recent announcement was concerning from a fashion perspective. Â
Trump’s tariffs are having a much bigger impact than expected on Nike Â
Trump’s most recent list includes nations that produce clothing, such as Vietnam and Indonesia, which are presumably further down the alphabet than Denmark, the European Union, and Greenland. Besides Nike, huge companies like Adidas and Puma source their supplies from the two nations listed, and Trump’s decision has caused their stock market value to plummet like a driverless Tesla into the Hudson River. Following the announcement of the news, shares of Skechers, Deckers, and Crocs also declined.Â
On Wednesday, the United States levied reciprocal tariffs of 46% on Vietnamese goods, 49% on Cambodian goods, 34% on Chinese goods, 32% on Indonesian goods, and 36% on Thai goods. Although Nike’s stock is still steady for the time being, analysts believe that the American brand will decline soon because it also depends significantly on imports from the aforementioned countries. Nike itself anticipates a more than 10% decline in revenue in the upcoming quarter, according to CNBC, and their figures are significantly worse than those of analysts.
Finance director Matt Friend anticipates that Nike’s initiatives will have the most impact in the fourth quarter, with revenue and gross margin headwinds projected to moderate. The corporation is also dealing with external challenges such as geopolitical dynamics, new tariffs, variable foreign exchange rates, and tax rules, all of which may influence consumer confidence.Â
Besides Nike, American Eagle, and Wayfair could also be impacted due to Trump’s tariffs
Brands and retailers have shifted some or all of their production out of China and are now using Vietnam to manufacture everything from couches to sneakers. For many years, businesses wishing to stay out of the crossfire of U.S. trade conflicts with Beijing turned to China’s southern neighbor. They are now unable to avoid President Donald Trump as he broadens his trade war globally. As part of a new round of international tariffs announced Wednesday, Trump declared he would impose a 46% levy on Vietnamese products. Â
Major companies in the clothing, furniture, and toy industries may soon see cost rises as a result, and some of them may boost prices for customers. On April 9, the Vietnam tariffs go into force. Donald Trump announced a new round of international tariffs on Wednesday, including a 46% duty on Vietnamese imports. This may soon result in cost rises for large companies in the toy, furniture, and clothing industries, some of which may raise prices for customers. On April 9, the tariffs on Vietnam go into force.
Moreover, Mexico overtook China as the largest supplier of commodities to the United States in 2023, after China had been the leading exporter for more than 20 years. Government statistics from the Office of the U.S. Trade Representative show that, with $438.9 billion in products sold in 2024, China is now the second-largest supplier to the United States. Vietnam has also grown in popularity as a destination for businesses seeking to diversify their manufacturing sources and lower the risks associated with trade disputes with China. Â
In 2024, Vietnam’s imports reached $136.6 billion, up around 19% from 2023, according to the U.S. Trade Representative’s office. However, government data shows that imports from China increased by just 2.8% between 2023 and 2024. Compared to 2022, when the United States imported $536.3 billion worth of goods from China, imports from that country fell by around 18% last year.
