Trump’s looming tariffs on Vietnam could deliver a brutal hit to U.S. sportswear brands—especially Nike (NKE). The company currently manufactures half of its footwear and nearly a third of its apparel in Vietnam, according to Reuters. If these imports get taxed under the new trade measures launching on April 2, Nike could be forced to either eat the added costs or raise prices—neither of which is great news for a brand already battling falling sales.
Vietnam Dependency Puts Nike and Adidas in the Firing Line
Nike isn’t alone. Adidas (ADDYY), which produces 39% of its footwear and 18% of its apparel in Vietnam, also faces a painful squeeze if the tariffs go through. Moreover, the White House is considering broadening its trade retaliation beyond China, and Vietnam—America’s fifth-largest goods supplier—is next in line. That leaves major apparel and footwear brands scrambling to assess impact.
Smaller Brands Like On and Puma Also Get Hit
It’s not just the giants. Puma (PMMAF) and On (ONON) are both heavily exposed to Vietnam and could be hit just as hard—if not harder. Puma’s shares have already slumped 23% this year following weak profit guidance, and the added pressure from tariffs could deepen the blow. For On, a newer player with fast-growing momentum, added costs could threaten its margins before it ever gets a chance to scale properly.
Vietnam Tries to Lessen the Blow
Vietnam, for its part, is trying to patch things up. The country has cut tariffs on certain U.S. products and approved SpaceX’s Starlink service to smooth over trade relations. But exports to the U.S. make up 30% of Vietnam’s GDP, making it especially vulnerable.
Retailers Warn Prices Could Spike
The retail sector is already sounding alarms. H&M’s CEO warned that U.S. consumers could end up footing the bill. As the April 2 tariff date approaches, brands like Nike and Adidas will need to make tough decisions—fast.
For those tracking the fallout, investors can compare Nike, Adidas, Puma, and On stocks side by side using the TipRanks Stocks Comparison tool. Analysts are most bullish on ONON stock. They’ve given it a Strong Buy rating, and the average price target of $63.53 implies an upside potential of 49% from current price levels.
