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

Birkenstock Holding

03/04/2025 12:00

Updates

** U.S. footwear makers' shares fall premarket 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 Holdings ONON.N

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

** Shares of Nike down 8.5%, Under Armour UAA.N falls 4.9% and On tumbles 13.3% premarket

** Lululemon Athletica LULU.O drops 10.2% and VF Corp VFC.N falls 7.3% premarket

** Hoka shoemaker Deckers Outdoor DECK.N down 9.8%, Skechers SKX.N falls 7.7% and Crocs CROX.O trips 10.4% before the bell

** Sporting goods retailer Foot Locker FL.N down 3.6% premarket

** German sandal maker Birkenstock BIRK.N also drops 4.2% premarket

** "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))