by WorldTribune Staff / 247 Real News April 4, 2025
Nike, which operates 340 factories in Asian nations rocked by President Donald Trump's tariffs announcement on Wednesday, saw its stock plummet by more than 11% on Thursday.
“NKE was last seen 11.3% lower at $57.62, as investors digest the long-term impact of rising supply chain costs on the company’s margins,” Schaeffer’s Investment Research reported. “The stock is set to snap a three-day win streak, extending its late-March post-earnings bear gap and hitting its lowest level since November 2017. Nike stock now carries a 23.5% year-to-date deficit.”
Trump's reciprocal tariffs included a 34 percent tariff on China, a 46 percent tariff on Vietnam, a 49 percent tariff on Cambodia, a 32 percent tariff on Indonesia, and a 36 percent tariff on Thailand, all of which Nike has factories in.
Reuters reported that shares in Nike, Adidas, and Puma dropped sharply after the Asian nations were hit with Trump's tariffs.
“Companies that worked hard over the years to reduce reliance on China by leaning into countries like Vietnam just learned there really isn’t a place to hide,” BMO Capital Markets analyst Simeon Siegel said.
"The reciprocal tariffs are particularly bad news for massive low-wage outsourcers like Nike," Breitbart News noted.
Nike operations in Asia include:
• 130 factories in Vietnam with almost 460,000 Vietnamese workers
• 117 factories in China with nearly 108,000 Chinese workers
• 45 factories in Indonesia with close to 300,000 Indonesian workers
• 24 factories in Cambodia with more than 57,000 Cambodian workers
• 24 factories in Thailand with nearly 21,000 Thai workers
In China, the average yearly salary for a Nike employee is $10,000.
In Vietnam, the average salary is about $7,200. Similarly, in Indonesia, the average salary is less than $9,500, and in Cambodia, the average salary is about $10,800.
In the United States — where Nike has just five percent of its total factories and employs less than 1 percent of its entire workforce — the average salary is about $67,000.
Other footwear companies taking a hit include Deckers Outdoor Corp. (DECK), Crocs (CROX), On (ONON), and Skechers (SKX), which were down 18%, 17%, 9%, and 20%, respectively.
Most of them, in addition to sportswear names like Lululemon (LULU) and VF Corp. (VFC), are exposed to regions with the highest reciprocal tariffs.
