From Yahoo Finance: 2025-04-05 14:00:00

Economist Peter Schiff warns Nike won’t shift production to US despite new tariffs, predicting higher prices and reduced domestic sales. Nike shares plummeted 14.44% after Trump announced reciprocal tariffs affecting supply chain, with Vietnam facing a 46% tariff increase where Nike produces nearly 50% of its footwear.

Goldman Sachs identifies Nike as highly exposed to new tariffs, including 34% rate for China and 32% for Indonesia. Market turmoil follows tariff announcement, with Wall Street losing $2 trillion in value. Consumer discretionary stocks hit hard, with Nike’s competitors like Lululemon and Adidas also suffering losses.

Analysts anticipate brands like Nike will need to adjust pricing, negotiate with vendors, and optimize costs to protect margins. Wedbush Securities analyst Dan Ives calls tariffs “worse than the worst case scenario,” expressing concern about impact on supply chains and demand. Nike lags behind competitors in growth and momentum, with a bearish price trend predicted.

Schiff dismisses idea of Nike absorbing tariff costs, suggesting redirection of products to other countries. Nike’s revenue by region from 2017 to 2024 shown in millions of US dollars. Nike’s competitors like Lululemon and Adidas experience declines due to high exposure to tariffs. Analysts warn of need for brands to adjust pricing and optimize costs.

Read more: A Much Better Strategy Amid Trump Tariffs