Shares in sportswear brands Nike, Adidas and Puma slide after tariffs hit Vietnam

Shares in Nike, Adidas and Puma dropped sharply on Thursday after U.S.

President Donald Trump imposed a raft of new tariffs, including on Vietnam, Indonesia, and China, key sourcing markets for the sportswear companies.

Vietnam was targeted with a 46% tariff rate, Cambodia with 49%, Bangladesh with 37% and Indonesia with 32%, while Trump hiked tariffs on China by an extra 34 percentage points, after earlier 20% tariffs.

The tariffs could wipe more than 10 percentage points off margins across the sector, as well as hitting sales as inflation worries dent consumer spending, said Felix Dennl, analyst at Metzler in Frankfurt.

“Sporting goods companies are likely to respond with price hikes in the U.S.,” Dennl said.

Frankfurt-listed shares of Nike were down 6.5% on the day, while Adidas shares dropped 9% to an almost one-year low and Puma shares fell 8.5%, hitting their lowest level since November 2016.

Nike produced half its footwear and 28% of its apparel in Vietnam in its 2024 financial year, while Adidas relied on Vietnam for 39% of its footwear and 18% of its apparel last year.

Indonesia and Cambodia are also key manufacturing hubs for Adidas, producing 32% of its footwear and 23% of its apparel, respectively.

Other retailers that rely on Asian factories were also hit.

Shares in Sweden’s H&M, which sources from China and Bangladesh mainly, were down 4.5%, while Zara owner Inditex fell 3%.