Some household names will feel the pinch from Vietnam tariffs. Nike manufacturers about half of its footwear in China and Vietnam, with about 25% coming from Vietnam. Trump will put a 34% tariff on top of existing 20% duties on imports from China, for an apparent rate of 54%, a White House official told CNBC.
The tariffs would be yet another headwind for the sneaker and athletic apparel giant, which already delivered a disappointing forecast for the current quarter. That guidance, which projects a double-digit percentage sales decline in the three-month period, included the estimated impact from tariffs on imports from China and Mexico.
Expanded tariffs could stall or slow Nike's efforts to revive its brand and improve sales under its new CEO, Elliott Hill, a company veteran who took the helm last fall.
Nike shares dropped nearly 12% in afternoon trading Thursday. Adidas and other major footwear players also rely heavily on Vietnam.
Adidas said it will evaluate the tariffs and monitor how they will affect its business. Nike did not immediately respond to CNBC's request for comment.
Nearly a third of footwear imports in the U.S. came from Vietnam in 2023, the most recent full-year data available, according to the Footwear Distributors and Retailers of America, an industry trade group.
Trump's tariff policy "is catastrophic for American families," said Matt Priest, CEO of the organization.
"Our industry is already dealing with inflationary pressures, and this move will force families to think twice before making a purchase," Priest said in a statement.
Steve Madden, for example, said on an earnings call in early November that it would slash its imports to the U.S. from China by as much as 45% over the next year. The footwear maker made that announcement just days after Trump's presidential victory, following his campaign trail promises to impose steep tariffs on countries like China.
Yet one of the nations Steve Madden has accelerated its move to is Vietnam, along with Cambodia, Mexico and Brazil, CEO Edward Rosenfeld said at the time on the earnings call.
Vietnam was the second-largest country for suppliers ofUgg and Hoka parent company Deckers Brands as of this month. The company has 68 supply chain partners in Vietnam, which is surpassed only by its 125 suppliers in China. Deckers shares dropped more than 15% on Thursday. The company did not immediately respond to a request for comment.
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