Trump announced significant tariffs affecting various countries, with Vietnam facing a 46% tariff particularly impacting the performance footwear industry. This move affects major brands like Nike and Adidas, which rely heavily on Vietnamese manufacturing. Following the announcement, share prices for several brands dropped by approximately 15%. Analysts, including David Swartz from Morningstar, expressed concerns that these tariffs could severely harm the footwear sector and believed no significant manufacturing would shift back to the U.S.
It almost feels intentionally directed at the [performance footwear] industry,
Swartz sees no upside to this government decision, noting that 'the chances that any of this leads to substantial manufacturing of footwear and apparel in the U.S. are practically zero.'
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