Nike Stock falls while American prices hit Asian suppliers

• Nike shares plummeted 13% in intra -day trade Thursday after President Donald Trump imposed abrupt reciprocal prices on Vietnam and other Asian countries where the sneakers make most of its products.

• The United States has imposed a price of 46% on imports from Vietnam, which made about half of Nike’s shoes during the year 2024.

• Morgan Stanley recently wrote that investors underestimate the potential impact of rates on Vietnam.

Nike (Nke)) Actions fall 13% in intra -day trade Thursday after President Donald Trump imposed reciprocal prices high on Vietnam and other Asian countries where the giant of sneakers manufactures most of its products.

The United States has imposed a price of 46% on Vietnamese products, 32% on Indonesia and 49% on Cambodia. President Trump also announced 34% of imports from imports from China, in addition to prices of 20% previously imposed on the goods of the greatest economy in Asia.

According to its annual report for the 2024 financial year, factories in Vietnam, Indonesia and China have manufactured around 50%, 27% and 18% of its shoes, respectively, while factories in Vietnam, China and Cambodia have made 28%, 16% and 15% of clothes.

“The potential increasing rates of Vietnam seem to be underestimated by investors, and could prove to be a notable front wind given an in-depth exposure of the supply in our coverage,” recently wrote Morgan Stanley analyst, Alex Straton, noting that outside Nike, allbird sneakers (Bird), Skechers (Skechers (Skx) and in outfit (Onon) are “potentially the most exposed” of the samples imposed on the country of Southeast Asia.

On Holding, Skechers and Allbirds’ shares fall respectively by 15%, 22%and 13%.

Update – April 3, 2025: This article has been updated to include the actions updating course.

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