Nike & Adidas in Crisis? Trump’s Tariffs Shake Up the Footwear Supply Chain

On April 2, 2025, President Donald Trump initiated sweeping tariffs under the "Liberation Day" policy, charging a 10% base tariff on imports generally and much higher rates on certain nations. Vietnam, a key production hub for Nike and Adidas, faces a steep 46% tariff. 

The action has rocked the world footwear market, notably harming giants such as Nike and Adidas, which largely depend on Asian production.

Nike's Supply Chain Disruption

Nike, which imports about 95% of its products from Vietnam, Indonesia, and China, is severely affected by the new tariffs. Vietnam is now charged a 46% tariff, Indonesia 32%, and China 54%. Nike's shares fell by 6% after the announcement, indicating investor worries about higher production costs and possible price increases for consumers.

Adidas Market Response

European sportswear companies Adidas and Puma are also struggling with the implications of these tariffs. The European Union is subject to a 20% tariff, whereas major sourcing nations Vietnam, Cambodia, Bangladesh , Indonesia, and China are subjected to tariffs as high as 32% to 54%. As a reaction, Adidas stocks fell 9% to just below a one-year low, and Puma stocks declined 11% to their lowest point since November 2016.

Tariffs: Industry Implications

The fashion sector, which is Asia-based supply chain-dependent, is facing tremendous disruption. The combined tariffs would raise costs by more than 15%, leading businesses to rethink sourcing practices and possibly transfer costs to consumers. Although there have been attempts to diversify production sites, the uncertainty of U.S. trade policy remains a persistent challenge.

On April 3, Vietnam's PM Pham Minh Chinh called the 46% rate "unfair" and hinted at immediate U.S. negotiations, recalling his January golf diplomacy remark about winning over Trump at Mar-a-Lago. No agreement yet.