Overview

• The U.S. announced new reciprocal tariffs, with Vietnam, Nike's largest manufacturing hub, facing a 46% rate, and China seeing an effective 54% rate.
• Nike produces 50% of its footwear and 28% of its apparel in Vietnam, making the company particularly vulnerable to these tariffs.
• The tariffs also impact other key Nike manufacturing markets, including Indonesia (32% tariff) and Cambodia (49% tariff).
• Nike's stock fell 7% in after-market trading following the announcement, while the S&P 500 ETF dropped 2%, signaling broader economic concerns.
• Nike has not yet issued a public response, leaving uncertainty about how it will address potential disruptions and increased costs.