Nike Ranks 137th in Trading Volume Amid Tariff Pressures and Supply Chain Diversification Moves

On August 1, Nike (NKE) closed with a 0.09% decline, trading at a volume of $0.88 billion, a 29.67% drop from the prior day’s activity. The stock ranked 137th in trading volume among listed equities. The move followed heightened scrutiny of U.S. tariff policies under the Trump administration, which announced new import duties ranging from 10% to 40% for global partners. Nike, which sources 16% of its U.S. imports from China, has accelerated supply chain diversification to Vietnam and other regions. The company previously warned that tariff-related costs could approach $1 billion in fiscal 2026, prompting a strategic shift to reduce China’s role to “high single-digit” levels by year-end. Nike also plans to implement a “surgical price increase” in the U.S. later this year to offset rising costs.

The latest tariff adjustments, effective August 7, impose 20% duties on Vietnam-sourced goods and 19% on Indonesia-sourced products. While China’s existing 30% tariff remains in place until August 12, Nike’s CFO has indicated a potential $185 million unmitigated cost impact in 2026 if Vietnam’s rates escalate. The company has already offset $75 million of these costs through mitigation measures. Analysts note that Nike’s proactive restructuring contrasts with peers like Deckers and On Holding, which face similar but less diversified supply chains. The sector-wide uncertainty has led to cautious investor sentiment, though Nike’s long-term cost management strategies may provide some resilience amid short-term pressures.

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