Nike Stock Plunges as Low-Wage Factories in China, Vietnam, Indonesia Face Trump’s TariffsJohn Binder 3 Apr 2025
Nike stock is plunging on Thursday, the day after President Donald Trump announced reciprocal tariffs that will end the nation’s decades-long free trade policy.
“NKE was last seen 11.3% lower at $57.62, as investors digest the long-term impact of rising supply chain costs on the company’s margins,” Schaeffer’s Investment Research reports. “The stock is set to snap a three-day win streak, extending its late-March post-earnings bear gap and hitting its lowest level since November 2017. Nike stock now carries a 23.5% year-to-date deficit.”
On Wednesday evening, Trump announced reciprocal tariffs — adding a 34 percent tariff on China, a 46 percent tariff on Vietnam, a 49 percent tariff on Cambodia, a 32 percent tariff on Indonesia, and a 36 percent tariff on Thailand, among a long list of others.
Reuters reports:
Shares in Nike, Adidas, and Puma dropped sharply after Vietnam was targeted with a 46% tariff rate, Cambodia with 49%, Bangladesh with 37% and Indonesia with 32%, while Trump hiked tariffs on China by an extra 34 percentage points, following the earlier 20% tariffs.
“Companies that worked hard over the years to reduce reliance on China by leaning into countries like Vietnam just learned there really isn’t a place to hide,” BMO Capital Markets analyst Simeon Siegel said.
The reciprocal tariffs are particularly bad news for massive low-wage outsourcers like Nike, which operates 117 factories in China with nearly 108,000 Chinese workers and 130 factories in Vietnam with almost 460,000 Vietnamese workers.
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