Nike, Lululemon Face 30% Tariff Hike on Vietnam Imports

Nike and other major apparel brands are bracing for significant price increases as the U.S. government prepares to implement new tariff measures. The policy, announced by the Trump administration, will impose tariffs exceeding 30% on imports from countries such as Cambodia, Vietnam, and Thailand. These nations are crucial links in the global supply chain, particularly for the textile and footwear industries.

Vietnam, for instance, is a major exporter of textiles and apparel, with the U.S. being its largest market. According to the Vietnam Textile and Apparel Association, the country's textile and apparel exports reached $44 billion in 2024, with a significant portion of this trade directed towards the U.S. Brands like Nike and Lululemon have over 35% of their production capacity based in Vietnam, making them particularly vulnerable to the new tariffs.

The impending tariffs have already caused widespread concern among industry organizations and enterprises in Vietnam. The Vietnam Seafood Processing and Exporting Association has petitioned the government to reduce U.S. seafood import tariffs from the current 3% to 10% to zero, in an effort to mitigate the impact of the new measures. Vietnam has also proposed that the U.S. government delay the implementation of the tariffs and provide a three-month negotiation period.

Economists warn that the short-term effects of these tariffs will be severe. Asian exporters will struggle to find alternative markets, and U.S. importers will face difficulties in securing replacement suppliers. The disruption in the global supply chain is expected to lead to a sharp decline in demand, particularly for low-cost manufacturers in Asia. This will have a painful impact on the economies of countries heavily reliant on exports to the U.S.