Nike shares fell by 6.4 percent after US President Donald Trump’s decision to impose tariffs. This happened at a time when Nike was already losing its stake in the market due to new brands like on and hoca. This shoe manufacturer has received the biggest setback from Trump’s new tariff. Whenever there is talk of good shoes in India, there is definitely a mention of Nike shoes. The shoes of this company are a bit expensive, which is why their shoes are mostly seen in the feet of rich people.
Tariffs are not good for Nike
However, now this company has suffered a major setback due to Donald Trump’s tariff. This is the reason that on March 3, the shares of this company fell by 6 percent. How the decision of US President Donald Trump has created difficulties for Nike. On the occasion of “Mukti Day”, US President Donald Trump imposed an additional 46 percent tariff on goods imported from Vietnam. This decision has led to a steep decline in major sports material companies, especially Nike shares. Nike 50 percent of shoes and 28 percent of clothes are made in Vietnam. Similarly, 39 percent of the shoes of Adidas also come from there.
Why is Vietnam so important?
Indeed, large brands manufacture there due to low labor costs, skilled workforces and better transport infrastructure in Vietnam. But Trump targeted Vietnam because his trade surplus with the US was $ 123.5 billion. Nike shares fell by 6.4 percent after Trump’s decision. This happened at a time when Nike was already losing its stake in the market due to new brands like on and hoca. The company’s CFO Mat Friend warned last month that the revenue would fall further in the upcoming quarter. Nike shares declined by 20 percent in March.
China and Cambodia also affected
A heavy duty has been levied not only from Vietnam, but also from China (34 percent tariff) and Cambodia (49 percent tariff). Hong Kong fell by 18 percent in shares of Nike supplier Shenzhou International, the biggest decline in three years. Vietnamese Prime Minister Fam Minh Chinh also offered to play golf with Trump. So that business disputes can be resolved. He cut taxes on US imports and also approved Starlink services. But Trump ignored these efforts.
The Post Tariff War: The biggest shock to this shoe making company with Trump’s new tariff! First appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
