Tariff Turmoil: Can Nike Absorb the Blow?

Nike faces challenges as the U.S. considers imposing tariffs on Vietnamese imports. The company had produced a significant portion of its goods in Vietnam. With rising trade tensions, increased production costs may affect Nike's pricing strategy and competition with fresher brands like On and Hoka.

Nike may encounter new hurdles in its attempt to rejuvenate its brand, as the United States considers tariffs on Vietnamese imports. These tariffs, anticipated to be announced by President Donald Trump, could impact countries with high trade surpluses like Vietnam.

Nike, producing half of its footwear and a significant portion of its apparel in Vietnam, must brace for the potential cost increases that could arise if tariffs are applied. The company, already lowering prices to manage inventory, might face intensified competition from innovative brands like On and Hoka.

Other sportswear companies reliant on Vietnamese production, such as Adidas and Lululemon, also prepare for potential shifts in trade policy. With rising sneaker prices and production costs, industry experts warn that manufacturers may find it increasingly difficult to manage consumer expectations in a volatile market.

(With inputs from agencies.)