Nike Inc (NYSE:NKE) shares are tumbling Thursday after U.S. President Donald Trump announced sweeping reciprocal tariffs on several countries around the world.
What To Know: Nike shares are falling sharply Thursday morning as Trump administration tariffs threaten the company’s supply chain.
Nike imports most of its products from Vietnam, China and Indonesia. Close to 50% of all Nike footwear is currently made in Vietnam, according to Bloomberg.
The Trump administration announced new 46% reciprocal tariffs on Vietnam, 34% tariffs on China and 32% tariffs on Indonesia late Wednesday, sending stock market futures spiraling lower. Retailers are among the hardest hit names.
Nike competitor, Adidas is facing selling pressure as it makes about 39% of its footwear in Vietnam. Lululemon is also trading significantly lower Thursday morning. The athleisure company makes 40% of its products in Vietnam and about 17% in Cambodia. Trump slapped a 49% reciprocal tariff on Cambodia this week.
Wedbush’s Dan Ives took to X following the announcement, calling the tariffs “worse than the worst case scenario.”
“The biggest focus will be the China 34% tariff and Taiwan 32% and how this impacts supply chain and demand,” Ives said in the X post.
NKE Price Action: Nike shares were down 13.0% at $56.51 at the time of publication Thursday, according to Benzinga Pro.
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