Tariff Hike Hits Sneaker Giants: Nike, Adidas Shares Plummet

President Donald Trump's imposition of substantial tariffs on key manufacturing countries has led to an expected rise in sneaker prices from brands like Nike and Adidas. This move has caused a significant drop in share prices for sportswear companies, raising concerns about the future of the apparel industry.

In a dramatic policy shift, President Donald Trump has imposed hefty tariffs on Vietnam, China, and Indonesia, key manufacturing sites for major sportswear brands such as Nike and Adidas. The tariffs are expected to push up sneaker prices in the U.S., affecting consumer choices.

Following the announcement, shares of Nike, Adidas, and Puma nosedived, with Vietnam facing a 46% tariff rate, while China saw an additional 34 percentage points rise. Apparel industry analysts warn that these tariffs are set to cripple the already strained sector, making production shifts less viable.

UBS analysts predict price hikes to counteract the tariffs. With escalating tensions between the U.S. and sourcing countries, and a massive $26 billion expected in duties, the future appears challenging for U.S. sportswear imports and retail prices.

(With inputs from agencies.)