Nike Poised for Price Increases Following Vietnam Tariff Agreement

Nike Inc.is gearing up for perhaps steeper price increases following a new trade deal between the U.S. and Vietnam that raises tariffs substantially, according to industry analysts.

“Nike was already planning targeted price adjustments, but we now foresee these increases being more substantial than initially expected,” noted Rick Patel from Raymond James in a client update on July 2.

The new agreement announced by President Trump will impose a hefty 20% tariff on goods imported from Vietnam—double the previous rate of 10% established earlier this year. Before Trump’s second term began, tariffs stood at about 8% for nonagricultural products coming from Vietnam.

Patel also pointed out that these increased tariffs could squeeze profit margins more than anticipated not just for Nike but also for other brands sourcing products from Vietnam like Under armour and Lululemon Athletica.

The stock performance of Nike remained stable on July 3 after experiencing a roughly 4% rise the day before when Trump discussed this trade deal online. Investors seemed relieved that the tariff increase was capped at only 20%, as many had braced for rates between 25%-30%, according to patel’s insights.

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