Sportswear crisis: Nike, Adidas, and Puma face trade war heat

Shares in Nike, Adidas, and Puma fell sharply after the U.S. imposed steep tariffs on Vietnam, Indonesia, and Cambodia, key sourcing hubs. The move raises concerns over rising costs and supply chain disruptions, adding fresh uncertainty to global markets.

Shares in leading sportswear brands Nike, Adidas, and Puma tumbled on Thursday following U.S. President Donald Trump’s announcement of sweeping new tariffs. The latest trade measures impose a 46% tariff on Vietnam, 49% on Cambodia, 37% on Bangladesh, and 32% on Indonesia, key manufacturing hubs for the industry. China also faces an additional 34 percentage point hike, further escalating trade tensions.

Nike, which sourced 50% of its footwear and 28% of its apparel from Vietnam in its 2024 financial year, saw its Frankfurt-listed shares drop 6.5%. Adidas shares fell 9% to a one-year low, while Puma plunged 8.5%, hitting its lowest level since November 2016.

Adidas relies heavily on Vietnam, which accounts for 39% of its footwear production, with Indonesia and Cambodia contributing 32% and 23%, respectively. Analysts warn that these higher tariffs will disproportionately impact the sportswear sector, leading to potential cost increases and supply chain disruptions.

The tariffs add fresh uncertainty to the global economy, with investors closely watching how these brands navigate rising costs and shifting trade policies. Market analysts anticipate further volatility as companies assess their sourcing strategies in response to the trade war escalation.

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