Nike and Adidas, among the companies that could be most affected by Trump’s tariffs

There are multiple consequences of the tariffs imposed by the President of the United States, Donald Trump, on more than 90 countries.

In the face of this, two giant sneaker brands could experience an increase of up to 46% in their products, due to the percentage in a region that is home to one of the largest manufacturing centers in the world: Vietnam.

Trump imposed a 46% tariff on the Asian country. In Vietnam, the largest factories owned by Nike and Adidas are located, so this decision affects prices as it increases costs in the supply chain.

According to a report from Bloomberg, half of Nike’s sneakers are made in Vietnam. In the case of Adidas, around 39% of their footwear is made in Vietnamese factories.

Tariffs hit Vietnam and the two sneaker brands. The factories in this country generate around 20 million dollars in annual revenue, combining the numbers of the two companies.

Do factories change?

Nike and Adidas are facing similar issues to those of Apple, which has operational centers in China. Electronic products could be manufactured in other countries with lower tariffs.

“Changing supply chains is not an option, as high-performance footwear requires very specific factories and skills. I don’t understand how consumer prices are not going to go up,” said the experts from Bloomberg, who predict an inevitable price increase in the sneaker market in the coming months.

Bloomberg experts say that, in the case of sneakers, this is not an option, due to the optimal quality that Vietnam offers in terms of footwear manufacturing.

Donald Trump imposed import tariffs on at least 90 countries. Vietnam (46%) is among the countries with the harshest measures in this regard.