Nike stays green after tariff block rekindles some supply chain optimism
Nike shares spiked as much as 5.5% higher yesterday in after-hours trading after a federal court blocked most of President Trump’s proposed tariffs, a potential relief for brands like Nike that rely heavily on Asian manufacturing. Upon market open, the sneaker maker was only slightly up as Wall Street comes to terms with the idea that the White House likely has workarounds to keep tariffs in place.
The athletic giant has lost more than a third of its value over the past year amid cooling demand and tariff turmoil. About 18% of Nike’s footwear is made in China, while Vietnam accounts for about 50%. The company had warned that tariffs on Chinese and Mexican imports could drag on gross margins by up to five percentage points and planned price hikes by June 1 to offset rising costs. With tariffs on pause, that pressure could ease… at least for now.
Nike’s stock is down about 18% year to date.
