Nike breathes after Trump’s tariffs announcement: its major competitors fall almost 10% on the stock market
Various stocks have fallen after Donald Trump announced major tariffs on a number of countries across the world.
Donald Trump continues to use his favourite word - tariffs - as a threat to the rest of the world. While many people in the United States have now realised the reality of tariffs, that we will all have to pay for them, the President himself is adamant on imposing higher prices on his own citizens.
While we have seen stocks fall in the automobile market, tech and other areas, the latest announcement from the former reality TV star was rather worrying from a fashion standpoint. Clothing-producing countries including Vietnam and Indonesia have been included on his latest list, as presumably he’s further down the alphabet than Denmark, the European Union and Greenland.
The two countries mentioned are where huge brands such as Adidas and Puma get their materials from, and Trump’s decision has seen their value on the stock market plunge like a driverless Tesla into the Hudson River. Shares of Skechers, Deckers and Crocs also fell once the news was announced.
Trump administration has put a 10 percent tariff on the Heard and McDonald Islands….
— MaineWonk (@TheMaineWonk) April 2, 2025
which has a population of 0 people and is inhabited only by penguins. pic.twitter.com/oSx7LyU0b3
Stock projections ‘far worse than analysts expected’
The US imposed a 46% reciprocal tariff rate on Vietnamese goods on Wednesday as well as a 49% tariff on Cambodia, 34% on China, 32% on Indonesia and 36% on Thailand.
For now, Nike’s stock remains stable, but the forecast is not pretty, with experts predicting that the American brand will fall in the near future given the fact that the company also relies heavily on imports from the aforementioned nations.
CNBC report that Nike themselves expect sales to fall by more than 10% in the next quarter, and their numbers are “far worse than analysts expected.”
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“We believe that the fourth quarter will reflect the largest impact from our ... actions, and that the headwinds to revenue and gross margin will begin to moderate from there,” said finance chief Matt Friend. “We are also navigating through several external factors that create uncertainty in the current operating environment, including geopolitical dynamics, new tariffs, volatile foreign exchange rates and tax regulations, as well as the impact of this uncertainty and other macro factors on consumer confidence.”
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