Tariffs on Vietnam imports decreased to 20% from 46%, but companies plan to raise prices.

From CNBC: 2025-07-03 11:53:00

The retail industry is relieved as Trump plans to drop tariffs on Vietnam imports from 46% to 20%, but some executives fear it will still impact consumer spending. The deal is expected to have implications on pricing and the supply chain for companies like Nike and others who rely on Vietnamese imports.

Retail executives in the apparel and footwear industries have been on edge over the potential high tariffs on Vietnam imports, which could have been as high as the duties imposed on Chinese imports. Many companies shifted production to Vietnam to avoid the high tariffs, with the country becoming a vital supplier for footwear, apparel, and accessories in the U.S. market.

The 20% tariff on Vietnamese imports is seen as a relief for many companies, but they are still planning to increase prices to offset the impact on profit margins. Executives worry that the price hikes could negatively affect consumer spending as the cost of products like shoes and sweaters could increase significantly under the new tariff rates.

Although the 20% tariff is a better outcome than the initially proposed 46%, some executives believe it will still burden consumers and impact businesses negatively. Companies are preparing to navigate the cost implications of the tariffs and potentially raise prices to offset the impact on their profit margins.



Read more at CNBC: How tariffs affect retail, Nike