Nike Stocks Plummet Following President Trump’s Tariff Announcement

Nike stocks have plummeted following the announcement of President Trump’s 46% tariff on Vietnam.

Nike stocks fell 6% following the tariff announcement.

The Trump administration also placed a 32% tariff on Indonesia and a 34% tariff on China.

Vietnam, Indonesia and China combined make up 95% of Nike’s manufacturing.

Nike stock right now – the company has >450,000 employees across 130 factories in Vietnam (46% tariff rate) pic.twitter.com/9irIE3j5cW

— Mike Bird (@Birdyword) April 2, 2025

Per WSJ:

Nike shares fell 6% after President Trump announced reciprocal tariffs of 46% on Vietnam, 32% on Indonesia and 34% on China. Suppliers in Vietnam, Indonesia and China make 95% of the sneaker company’s manufactured goods.

Like most U.S. footwear brands, Nike has long relied on Asia factories to produce its products. Nike had shifted away from China as its main manufacturing partner to countries like Vietnam and Indonesia.

Shares of Skechers, Deckers and Crocs also fell on the news.

Nike, Columbia stocks hit hard by Trump’s tariffs
https://t.co/L8rh9D3rF3

— FOX 12 Oregon (@fox12oregon) April 3, 2025

Here’s what CNBC reported:

Retailers and brands have turned to Vietnam to manufacture goods from sneakers to couches while moving some or all production out of China.

For years, China’s southern neighbor became a popular alternative for companies trying to avoid the crossfire of U.S. trade tensions with Beijing. Now, as President Donald Trump expands his trade war worldwide, they can no longer steer clear.

Trump said he will put a 46% duty on imports from Vietnam as part of a new wave of global tariffs announced Wednesday. That could soon raise costs for major corporations in the apparel, furniture and toy space, and some of them may pass those increases to consumers in the form of price hikes. The tariffs on Vietnam take effect on April 9.

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China exported more goods to the U.S. than any other country for more than two decades, but Mexico surpassed China as the top source in 2023. China is now the second-largest supplier to the U.S., accounting for $438.9 billion worth of goods in 2024, according to government data from the Office of the U.S. Trade Representative.

For companies that have looked to diversify the countries they rely on for production and reduce risks from trade conflicts with China, Vietnam has also become a popular place to go. Imports from Vietnam grew to $136.6 billion in 2024, up about 19% from 2023, according to the Office of the U.S. Trade Representative.