President Donald Trump announced a new wave of tariffs on imports yesterday, which had an immediate negative impact on the sportswear industry.
Stocks from footwear companies like Nike began plummeting during after-hours trading on Wednesday and continued into Thursday, with the Swoosh down nearly 13 percent at the time of writing.
The plunging stock prices of Nike are a direct response to Trump's tariffs of 10 percent for all imports taking effect on April 5, with steeper tariffs on imports from select countries being imposed on April 9. For the latter, the higher tariffs include 34 percent on imports from China, 32 percent on imports from Indonesia, and 46 percent on imports from Vietnam. Nike said in an SEC filing last year that factories made roughly 50 percent of its footwear in Vietnam, 27 percent in Indonesia, and 18 percent in China.
Nike isn't the only sportswear company being affected by the news of the tariffs. Stock prices took a huge tumble for brands like Adidas (16 percent), Crocs (15 percent), On (15 percent), Under Armour (17 percent), and others on Thursday, with percentages expected to fluctuate throughout the day.
