Sneaker Shock: Trump's Tariff Hike Sends Prices Soaring

Prices of Nike Jordan and Adidas Samba sneakers are set to rise due to new U.S. tariffs on sportswear manufacturers in Vietnam and Indonesia. These tariffs are impacting major brands like Nike, Adidas, and Puma, causing significant share drops and potentially raising apparel costs and consumer prices.

In a sweeping move that could upset the sneaker market, President Donald Trump has rolled out a series of tariffs affecting key sportswear manufacturers in Vietnam and Indonesia. These new levies threaten to hike prices for U.S. consumers on popular sneakers like the Nike Jordan and Adidas Samba.

The financial blow was immediate; shares in top brands such as Nike, Adidas, and Puma fell sharply as Vietnam faced a new 46% tariff rate, with other Southeast Asian countries similarly targeted. For years, companies have been fleeing Chinese factories amid U.S.-China tensions, only to find no safe haven now.

As a result, the cost of apparel tariffs in the U.S. could more than double by 2024, potentially squeezing profit margins and causing price hikes for consumers. Analysts warn that renegotiating supply chains may provide some relief, but the challenge to mitigate these added costs remains daunting.

(With inputs from agencies.)