Nike Stock Plunges 5.72% Amid Trump Tariff Announcement

On April 4, 2025, Nike's stock price dropped by 5.72% in pre-market trading, reflecting significant market volatility and investor concerns.

Nike's stock decline is primarily attributed to President Donald Trump's announcement of reciprocal tariffs on nearly all U.S. imports. This policy has sparked widespread market reactions, with Nike being particularly affected due to its extensive manufacturing operations in countries like China and Vietnam.

Trump's tariffs, which include a minimum 10% reciprocal tariff on nearly all countries and country-specific tariffs on 60 nations, have raised concerns about increased costs for companies that rely heavily on imports. Nike, which manufactures a significant portion of its footwear in China and Vietnam, is expected to face higher production costs and potential supply chain disruptions.

Investors are also worried about the broader economic implications of the tariffs, including potential inflation and slower economic growth. The uncertainty surrounding the tariffs and their potential impact on global trade has led to a sell-off in stocks, with Nike being one of the hardest-hit companies.