Overview

• President Donald Trump announced reciprocal tariffs, including a 46% rate on Vietnam, 34% on China, and 32% on Indonesia, effective April 9, 2025.
• Nike's stock has plummeted 11.3%, hitting its lowest level since 2017, with broader consumer discretionary stocks also suffering losses.
• The tariffs are projected to increase U.S. retail prices for Nike products by 10% to 12%, with Air Jordan sneakers potentially rising from $180 to $198.
• Nike, which produces nearly 50% of its footwear in Vietnam, is unlikely to shift production to the U.S. due to cost constraints, focusing instead on non-U.S. markets.
• Economists warn of long-term shifts in global trade, with U.S. import duties on apparel expected to more than double to $26 billion annually.