Nike's 30-Year Gamble on Vietnam Rattled by US Tariffs

At Nike's headquarters in Oregon, executives are trying to figure out how to best spread the pain of new tariffs.

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NEW YORK -

Nike, the factories that produce its goods, the wholesalers that sell the goods and ultimately shoppers will all likely share portions of the cost, according to a person familiar with the matter.

The backbone of Nike's supply chain is being threatened by US President Donald Trump's global tariff campaign, straining a decades-long investment just as the world's largest sneaker company tries to rebound under a new chief executive.

Over the past 30 years, Nike has funneled billions of dollars of production into Vietnam, helping turn the South-east Asian nation into a powerhouse for footwear and apparel production.

On April 9, Mr. Trump imposed a 46 percent tariff on goods from Vietnam—among the steepest on the countries he targeted—that threatens to devastate its manufacturing industries.

The announcement was then thrown into limbo hours later when Mr. Trump said he would pause higher tariffs on dozens of non-retaliating countries for 90 days. Nike shares rose 7.2 percent at 1:30 p.m. in New York after the US President posted about the pause on social media.

Nike has become a symbol of corporate fallout from Mr. Trump's tariff blitz: A famed US brand entangled in an economic calamity that has wiped trillions from stocks and pushed global supply chains into disarray. Executives have been left with a costly conundrum across Asia, where nearly all Nike sneakers are made.

The timing could not be worse. New CEO Elliott Hill is attempting to revive a company weighed down by slumping sales and corporate layoffs. Nike expects further declines in revenue and profitability, and shares have fallen 30 percent so far in 2025.