US tariffs on Vietnam would be a blow to Nike and other sportswear brands

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New York/London: Nike may face another shock in an attempt to restore her brand and change the prolonged reduction in sales: US revenue on imports from Vietnam.

On Wednesday, US President Donald Trump is expected to announce which countries and products will target a new period of prices that aims to encourage domestic production and buy more US goods to other countries.

Vietnam, which runs 3 123.5 billion commercial surplus with the United States, is an important target.

Nike is one of the several sportsware brands that relies heavily on Vietnam because a production site and more revenue will force the company to absorb more costs or increase its prices at a time when some items are already being exempt to clean the inventory.

According to its annual report, Nike produced 50 % of her shoes in her 2024 fiscal year and 28 % of her costumes in Vietnam. Royal Eddie Doss has been slightly exposed, which relies on 39 % of his shoes and 18 % of its costumes on Vietnam.

According to Fashion Professor Sheng Lu’s January trading calculation at Delaware University, the average US revenue rate on shoes from Vietnam is 13.6 percent, while the rate on costumes is 18.8 percent.

“If prices are raised there, Nike is facing a problem,” said David Swartz, an analyst for Morning Star.

Nike and Eddie Dos are hardly lonely. Vietnam has become the center of high -tech shoes, sports clothing and outdoor costumes as brands have tried to reduce China’s exhibition.

Lolimone, Columbia Sportsware and Aamir Sports, who own Slomon and Arcticics, count Vietnam as their high manufacturing country.

But potential prices come at a critical moment for Naik, which has lost the market share for the competent, which is considered fresh and more modern, such as on and on.

In a call for a quarter of income last month, Chief Financial Officer Matt Dost said that it is expected that Nike’s income will decrease in the next quarter.

This is an Outlook factor at the current rates, said Columbia ThreadNoodle Investment Senior Equity Analyst, who holds shares of Nike, said. “But what if it gets damaged?”

Creation of the industry for impact

Some small, small sportsware brands are even more exposed to Vietnam. In 2024, the growing running brand earned 90 % of its shoes and 60 % of its costumes and accessories from the country.

Shoes are already expensive, which sells a pair for $ 130 to $ 330, and the brand’s chief operating officer, Samuel Weigner, said the revenue factors were included when deciding the price. “Our premium brand gives us the ability to think of our prices,” he told Reuters.

Market research firm Sarana’s shoes industry analyst Bait Goldstine said the average shoe prices have increased by 25 % since 2019.

While us sales of running shoes have Risen 16 per cent to $ 7.4 Billion Since 2021, according to Circana’s Consumer Tracking Service, Us Consumer Conference Recently Hit a Four-Yar Low, Suggesting More Price Increases Could Prove Hard To Swallow.

It is not easy to move from Vietnam to production. Southeast Asian countries, such as Cambodia and Indonesia, may also face revenue, and the cost of production is already increasing.

Michael Yi, CEO of costumes and accessories in Hong Kong, said Michael Yi, CEO, said factories in Cambodia are charging more than 5.0 percent more than 10 percent as they are getting more orders from retailers seeking to change production from China or Vietnam.

Nike, Adidas and Aamir Sports refused to comment on questions about Vietnam prices. Lolimon and Columbia Sportsware did not respond to Reuters’ requests for the comments.

Experts say the good news is that imports from Vietnam – especially for costumes – are unlikely to stand like the people of China.

Leaders in Hanoi have taken several steps to stay in Trump’s good waste, promising more imports from the United States, further imports of lower duties, and allowed Trump’s adviser Elon Musk’s satellite company – Star Link to offer his internet services in the country.

In the meantime, the Trump is in partnership with Vietnam on potential investment in the organization, hotel, real estate and golf course projects, which is likely to be worth billions of dollars.

“Vietnam has proven the ability to play a geographical political game very skilled,” said Johannes Luffestland, manager of the Frontier Markets Equality strategy weighing on Vietnam’s stock, Johannes Luffestland.

Wilber Ross, who served as Commerce Secretary in Trump’s first administration, said that the president generally has good relations with Vietnam and he has no reason to hit the tariff with a tariff that will be felt on Main Street. “People look at the cost of costumes because they buy it quite times.