Nike gets stomped as new Vietnam tariffs slam the company’s sneaker-making pipeline
Nike shares have lost nearly a third of their value over the past year.
Nike’s stock took a pounding Thursday, sliding over 11% in premarket trading, after President Donald Trump announced a steep 46% tariff on imports from Vietnam — Nike’s manufacturing backbone.
The sneaker giant has spent years shifting production to Vietnam to dodge US-China trade tensions, but the new tariffs could unravel that strategy. In fiscal 2024, half of all Nike footwear and 28% of its apparel came from Vietnamese factories, by far its biggest supplier. Trump also added tariffs to major sportswear manufacturers Cambodia (49%), Bangladesh (37%), and Indonesia (32%).
The timing couldn’t be worse. Nike shares have already been limping, falling 7% last month after the company warned of slowing sales and shrinking margins before tariffs even entered the picture. Consumer fatigue and weaker spending have also weighed on its performance in the US and China, two key markets.
Analysts aren’t too optimistic: last month, UBS slashed its price target on Nike from $73 to $66, saying the company hasn’t done enough to refresh its product lineup or marketing to turn the tide. The tariff shockwave also hit the broader sneaker market, with shares of rivals Adidas, Skechers, and Puma all sliding on the announcement.
