The Impact of Trump's Tariffs on Vietnam: The Global Footwear and Apparel Supply Chain Faces the Test of "Sky-High Tax Bills"

According to the Zhitong Finance APP, U.S. President Trump has imposed punitive tariffs on global manufacturing hubs such as Vietnam, causing severe disruptions in the global footwear and apparel supply chain. As a new battleground in the escalating trade war, the U.S. Department of Commerce announced on Wednesday a 46% reciprocal tariff on Vietnamese goods, with Cambodia, China, Indonesia, and other countries also included in the tariff list, with rates ranging from 10% to 49%. This sudden tariff storm is rewriting the fate of the global textile and apparel industry.

As the "second hometown" of the world's largest sports footwear and apparel brands, Vietnam is bearing the brunt of the impact. Nike (NKE.US) has about 50% of its footwear products and Adidas (ADDYY.US) has 39% of its production concentrated in Vietnam, with annual sales exceeding $20 billion.

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After the tariff news was announced, Nike's stock price plummeted nearly 7% in after-hours trading, while Lululemon Athletica (LULU.US) saw a direct drop of 10% due to 40% of its production capacity being in Vietnam. Other sports brands such as Skechers (SKX.US), On (ONON.US), Steve Madden (SHOO.US), and Crocs (CROX.US) also faced collective pressure, with retailers like Dick's Sporting Goods (DKS.US) and Foot Locker (FL.US) also experiencing declines.

The American Retail Federation pointed out that the essence of the tariffs is "consumers paying the bill": "These taxes will ultimately be passed on to ordinary families, exacerbating inflationary pressures." Bloomberg industry analysts have issued a warning: "High-performance sports shoes require specialized production lines, and shifting the supply chain is nearly impossible; price increases are a foregone conclusion."

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The root of this storm can be traced back to the U.S.-China trade war. When brand owners collectively withdrew from China, Vietnam quickly became a "replacement option" for giants like Nike and Adidas, thanks to its cheap labor, mature industrial chain, and free trade agreement advantages. Today, Vietnam's textile exports exceed $44 billion, with the U.S. being its largest market, and the footwear and apparel industry contributes 7.1% to the country's GDP growth.

However, the Trump administration has long set its sights on this "new front." In 2019, the president warned that Vietnam was "taking advantage of the U.S. more than China," and in January of this year, Secretary of State Rubio directly pressured the trade imbalance issue. Data shows that Vietnam has a trade surplus of $123 billion with the U.S., second only to China and Mexico, which became the trigger for the imposition of tariffs.

In the face of tariff threats, the Vietnamese government has launched an emergency diplomatic offensive. Prime Minister Pham Minh Chinh humorously stated in January that he was willing to go to Mar-a-Lago to "play golf all day" in exchange for trade peace, and subsequently introduced measures to reduce tariffs on U.S. automobiles, liquefied gas, and other products as a conciliatory gesture However, there remains a significant gap between Trump's "sky-high demands" and Vietnam's "bottom-line concessions."

This tariff dilemma across the Pacific is reshaping the global supply chain landscape. As brand owners are busy recalculating production costs, consumers may soon find that the price tags on their favorite sports shoes and apparel are quietly rising