A wave of concern is sweeping through the athletic footwear industry as Donald Trump‘s proposed import tariffs threaten to significantly impact sneaker manufacturers and retailers. The potential policies could especially affect companies heavily dependent on Asian manufacturing hubs.
What Happened: Industry leaders are bracing for impact after Trump proposed a 20% blanket tariff on all imports and a steep 60% levy specifically on Chinese goods. The footwear sector, which already faces substantial import duties, could see production costs surge further.
Wall Street reflected these concerns as major athletic wear stocks declined. Nike NKE fell 3.41%, while Adidas ADDYY dropped 3.62%. Under Armour UAA saw a 1.35% decrease, and VF Corporation VFC, owner of Vans, declined 2.67%.
“It’s a huge headwind for the entire industry,” Brooks Running CEO Dan Sheridan told Yahoo Finance, noting that footwear companies currently navigate a 20% tariff on Chinese imports and approximately 27% on Vietnamese goods.
Benzinga contacted several impacted companies but did not receive an immediate response.
Why It Matters: The industry’s vulnerability stems from its heavy reliance on Asian manufacturing hubs, including China, Vietnam, and Indonesia. Additional levies could force companies to either absorb higher costs or pass them on to consumers.
Trump’s proposed policies follow his election victory over Democrat Kamala Harris, where he secured 277 electoral votes and 51% of the popular vote, according to Associated Press figures.
Some companies showed resilience amid the market uncertainty. Puma PMMAF gained 2.10%, while Deckers Outdoor Corp DECK, the parent company of Hoka One One, edged up 0.67%.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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