US footwear makers slip following Trump's new tariffs on Asian countries

Birkenstock Holding

03/04/2025 16:10

Updates

** Shares of U.S. footwear makers fall after President Donald Trump imposes new tariffs on Asia production hubs, including Vietnam, Indonesia and China

** These countries, including Bangladesh, are key sourcing markets for sportswear companies such as Nike NKE.N and Roger Federer-backed On Holding ONON.N

** Trump has targeted India with 26% tariffs, Bangladesh with 37%, Vietnam with 46% and Cambodia with 49%

** Shares of Nike down 12.3% at more than a seven-year low of $56.06 and Under Armour UAA.N falls 18% to nearly 15-year low of $5.40

** On tumbles 15.9%, Lululemon Athletica LULU.O drops 13.3% and VF Corp VFC.N falls 22.7%

** Hoka shoemaker Deckers Outdoor DECK.N down 17.4%, Skechers SKX.N falls 20.3% and Crocs CROX.O trips 18%

** Sporting goods retailer Foot Locker FL.N down 14.2% at near 15-year low of $12.45

** German sandal maker Birkenstock BIRK.N also drops 8.4%

** "The huge tariff on imports from Vietnam is clearly negative for Nike, Adidas and others in the sportswear space," Morningstar analyst David Swartz says

** "Athletic footwear cannot easily be produced in other countries due to the complexity of manufacturing. Making it worse, tariffs are being imposed on other Asian countries." - Swartz

(Reporting by Ananya Mariam Rajesh in Bengaluru)

((AnanyaMariam.Rajesh@thomsonreuters.com ; X: https://twitter.com/AnanyaMariam))