Tariffs Trigger Tumble in Sportswear Stocks

U.S. President Trump has announced significant tariff hikes on key sourcing nations, impacting major sportswear brands like Nike, Adidas, and Puma. These tariffs have led to substantial drops in their stock prices due to increased production costs in Vietnam, Indonesia, and China, critical manufacturing locations for these companies.

The sportswear giants Nike, Adidas, and Puma experienced a significant hit in their share values on Thursday. The decline follows the U.S. President Donald Trump's announcement of increased tariffs on countries that are crucial manufacturing hubs for these brands, such as Vietnam and Indonesia.

Vietnam is now facing a 46% tariff, while tariffs on Cambodia, Bangladesh, and Indonesia have also seen sharp rises. China's tariffs increased by an additional 34 percentage points. These hikes are expected to disproportionately affect sportswear brands that rely heavily on Vietnam for their production needs, according to analyst Cedric Rossi.

Nike, which manufactures a substantial portion of its products in Vietnam, saw its shares drop by 6.5%. Adidas and Puma shares fell by 9% and 8.5% respectively, reflecting the market's reaction to the potential impact of these tariffs. Vietnam remains a key production site for both Nike and Adidas, emphasizing the significant repercussions of these tariffs.

(With inputs from agencies.)