Nike loses $10 billion in valuation over Trump tariffs

The catalyst for this upheaval came from Trump’s “Liberation Day” press conference on Wednesday, where he unveiled new trade measures that could have lasting effects on global supply chains.

The U.S. will impose a 46% tariff on imports from Vietnam, a country that plays a pivotal role in Nike’s production operations. According to Nike’s fiscal 2024 report, nearly half of its footwear is manufactured in Vietnam.

In addition, China, another major supplier for the company, will face a 34% tariff on its exports to the U.S., further complicating Nike’s supply chain. These tariffs are in addition to previously imposed tariffs on Chinese goods, further escalating the financial pressure on companies that rely on these regions for production.

Nike, however, isn’t alone in feeling the effects. Other apparel and footwear companies also saw their stock prices take a significant hit. Lululemon, known for its athleisure wear, saw its shares drop by nearly 15%, while Deckers, the parent company of Uggs and Hoka sneakers, saw a decline of over 14%. Retailers like American Eagle and Abercrombie & Fitch also experienced notable drops, with their shares falling 9% and 11%, respectively.