Nike produced half of its footwear in Vietnam in its 2024 financial year. (EPA Images pic)
FRANKFURT: Shares in Nike, Adidas and Puma dropped sharply today after US President Donald Trump imposed a raft of new tariffs, including on Vietnam, Indonesia and China, key sourcing markets for the sportswear companies.
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, after earlier 20% tariffs.
“Sportswear brands will be disproportionately impacted by higher tariffs on Vietnam,” said Cedric Rossi, analyst at Bryan Garnier.
Frankfurt-listed shares of Nike were down 6.5% on the day, while Adidas shares dropped 9% to an almost one-year low and Puma shares fell 8.5%, hitting their lowest level since November 2016.
Nike produced half its footwear and 28% of its apparel in Vietnam in its 2024 financial year, while Adidas relied on Vietnam for 39% of its footwear and 18% of its apparel last year.
For Adidas, Indonesia and Cambodia are also key manufacturing hubs, producing 32% of its footwear and 23% of its apparel, respectively.
