Why Nike Stock Was Sliding Today

Core Insights - Nike's stock declined by 3.2% following President Trump's decision to reinstate reciprocal tariffs on several Asian countries, effective August 1 [1] - The company imports a significant portion of its products from Asia, particularly from Vietnam and China, which are its largest manufacturing markets [1][3] - The tariffs reinstated are similar to those announced in April, with Indonesia facing a 32% duty and Cambodia's duty reduced from 49% to 36% [3][4] Tariff Implications - As of fiscal 2024, Nike imported 27% of its footwear from Indonesia and 15% from Cambodia, making these countries particularly relevant in the context of the new tariffs [3] - Vietnam remains Nike's largest manufacturing market, with a duty of 20%, which is lower than the previously announced 46% [4] - Investors appear to be reacting more calmly to this tariff news compared to the previous "Liberation Day" announcement in April, which caused a significant stock crash [5] Financial Impact - Nike anticipates an additional $1 billion in costs due to tariffs this year, although the exact impact of the new tariffs remains uncertain [6] - The ongoing trade war and tariff situation indicate that investors should remain vigilant regarding potential headwinds for Nike in the future [6]