Trump imposed 46% tariff on Vietnam which has dealt a big blow to Nike, Adidas and all footwear and other companies. What has happened?
This new tariff may increase the cost of major companies of furniture and toys in the area as for the consumers of these products also, it is expected that the prices may increase as the rates may increase.
The price of stocks and shares of Nike company witnessed a huge decline on Thursday.
Certain large cap names, such as Nike, $NKE, are getting crushed even harder this morning.
Nike has 450,000 employees and 130 factories in Vietnam.
Yesterday, President Trump imposed a massive 46% #tariff rate on Vietnam.
The stock is currently 70%+ from its all time high. pic.twitter.com/Mb9mtLQ763
— Tha Bullmaster (@thabullmaster) April 3, 2025For many years there has been a lot of tension in the business relations between the Chinese city of Beijing and America, due to which companies are shifting their production to countries like Vietnam to escape the tension between America and China. Wholesalers, manufacturers and brands are staying in Vietnam for everything from sneakers to sofas and toys and are modifying their products as discussed above that there is a lot of tension in the business relations between China’s Beijing and America, Trump announced that a 46% trade tariff on Vietnam will be effective from 9 April.
China has been exporting most goods to America compared to any other country for many years, for more than 2 decades, but in 2023, the government officials of the American Business Institute showed that Mexico left China ahead of China in this race of trade exports, yet China is the second largest exporting country of America, due to which the American citizens are becoming dependent on Chinese products, which may lead to huge losses for America in the coming times.
Now all the companies who wanted to get rid of the Chinese trade conflicts or wanted to get ahead, they all started shifting to Vietnam, due to which America will have 136.6 billion dollars from Vietnam in 2024, which is 19% more than 2023.
Secondly, the imports from China have increased by only 2.8%. In 2022, compared to last year, the imports from China have fallen by 8%, which is being told by the American government team and now when the business seems to be improving, a bigger decline can be seen in the exports. Now, at the time when the improvement is about to take place, the consumers will also be shocked, the prices of all the products will also increase, due to which they will become more conscious about the expenditure, which can become a concern of inflation. Now when all the companies have shifted to Vietnam, it is not only in footwear but also in furniture and toys, a lot of goods are being exported to America. Now after the praise of 9th April, we will get to know even more who is at the forefront in the industry. So friends that is it for now and for news updates you can join our WhatsApp Channel, there you will keep getting news updates fast.
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