In the wake of President Trump’s announcement Wednesday of reciprocal tariffs, which were levied particularly hard against countries in Southeast Asia used by many American apparel companies as major manufacturing hubs, supplies of everything from footwear to jerseys could be greatly impact.
Nike stock was down nearly 13% Thursday morning on the news. The company produces 59% of its apparel in Vietnam, China and Cambodia, which were hit with tariffs of 46%, 34% and 49%, respectively. The company also produces half of its footwear in Vietnam and another 45% in China and Indonesia, which will see a 32% tariff.
UBS analysts told Reuters retailers might not be able to offset tariffs without passing on costs to consumers, saying, “countering the impact of the levies on Vietnam alone would require price increases of 10% to 12%.”
Shares of adidas were down nearly 9% Thursday morning. As of 2023, 78% of adidas' independent manufacturing partners were located in Asia.
Under Armour, which produced 68% of its apparel in Vietnam, Malaysia, China and Jordan, as of 2020, saw its stock dip nearly 18%.
MLB jerseys are produced by Fanatics domestically, though NHL jerseys are produced in Canada, which avoided the most recent tariff hike, but is still facing its own headwinds from the administration.
While card companies such as the Fanatics-owned Topps print cards domestically, the materials used in those facilities likely come from abroad. However, specifics are not known at this time.
Will Stern is a reporter and editor for cllct, the premier company for collectible culture.
