If President Donald Trump’s sweeping new tariffs are anything to go by, the answer is a resounding yes—and the global sneaker economy is already feeling the squeeze.
In a recent BBC report, the implications of Trump’s aggressive tariff policy are laid bare—and the picture for brands like Nike is anything but pretty.
Although Nike is an American icon, almost all its beloved trainers are made in Asia.
And now, that very supply chain is under siege.
Nike’s supply chain spans Vietnam, Indonesia, and China—countries that are now facing import taxes of 32% to 54% under Trump’s latest tariff barrage.
The result? An estimated 10% to 12% hike in production costs, according to analysts—and potentially much more if these levies persist.
Nike’s shares nosedived 14% the day after the announcement, reflecting deep investor concern.
Half of Nike’s shoes are produced in Vietnam alone, and there’s little room for quick pivots in such a complex and capital-intensive manufacturing process.
Despite a modest recovery following reports of a “productive” call between Trump and Vietnam’s leadership, market watchers are unconvinced the dust will settle anytime soon.
Will Nike Pass the Buck?
According to David Swartz of Morningstar, raising prices is inevitable—but risky. In a fiercely competitive market, even a 10–15% price hike could alienate value-conscious consumers, especially as economic uncertainty swirls.
It’s a tightrope walk for Nike.
Raise prices and risk losing customers.
Absorb costs and squeeze already slim margins—Nike’s net profit margin sits at around 11%, per BBC’s reporting.
A 30–50% spike in sourcing costs simply cannot be absorbed indefinitely.
Interestingly, Rahul Cee, founder of Sole Review and a former footwear designer for Nike and Vans, said that the brand could downgrade materials to keep prices palatable.
Think cheaper midsoles, longer design cycles, or reusing existing models more creatively.
But would fans accept a lesser product just to pay the same price? That remains to be seen—and it’s a dangerous gamble with brand loyalty.
For Asia’s marketers and media planners, this story has major implications. Nike—and countless Western brands like H&M, Gap, Lululemon, and Adidas—rely heavily on Asian manufacturing and supply chains.
If production slows or relocates, advertising budgets in the region could take a hit.
Even more critically, if consumer demand in the U.S. weakens, global campaign rollouts may be scaled back or shelved entirely.
Brands will become hyper-selective about where they place bets, and that spells trouble for regional agencies banking on global briefs.
While Trump’s policy aims to “bring manufacturing home”, experts like Professor Sheng Lu of the University of Delaware are sceptical.
He feels footwear production is too complex, too global, and too entrenched to relocate easily.
A move back to the U.S. would take years—and massive capital investment that few brands are eager to commit.
Without a robust textile ecosystem in the U.S., reshoring remains a pipe dream.
Matt Powers, of Powers Advisory Group, summed it up best: “It would be difficult and expensive. This transition, if pursued, would take years.”
While this may seem like a U.S.-centric trade issue, the fallout is undeniably global.
For brands, agencies, and consumers in Asia, the message is clear: brace for higher prices, disrupted plans, and strategic recalibrations.
Nike may still Just Do It—but for now, it might cost us all a bit more.
Source: “How Might Tariffs Change the Price of Nike’s Iconic Trainers?” by Annabelle Liang, BBC News, 5 April 2025.
