Shares of Nike plunged 7% in after-hours trading on Wednesday after President Donald Trump announced sweeping new tariffs , including a steep tariff on imports from Vietnam, where Nike makes half of its footwear. Nike is the largest company in Oregon’s robust sportswear industry, but it’s not the only one whose shares are getting squeezed by the new tariffs. Shares of Columbia Sportswear were down 3% in after-hours trading on Wednesday. Shares of Baltimore’s Under Armour, which maintains a large Portland office, fell 6%. Shares of Switzerland-based On, which employs around 300 in Portland , and which makes 90% of its footwear in Vietnam, were down 12%. Nike and Columbia did not immediately respond to requests for comment. On Wednesday, Trump announced across-the-board tariff increases, including 46% on Vietnam and 34% on China, two countries which for decades have been popular places to make sneakers and T-shirts. The tariffs are in addition to those already announced. “This is catastrophic for American families,” Matt Priest, CEO of the trade group Footwear Distributors and Retailers of America, said in a written statement. “We had hoped the president would take a more targeted approach, but these broad tariffs will only drive-up costs, reduce product quality, and weaken consumer confidence.” In remarks outside the White House, Trump said he hoped the tariffs spark more domestic manufacturing. “If you want your tariff rate to be zero,” Trump said, according to The New York Times , “then you build your product right here in America.” Virtually all of Nike’s manufacturing is done abroad. The company made 50% of its footwear and 28% of its apparel in Vietnam in its most recent fiscal year, according to the company’s annual report. It has steadily moved more footwear manufacturing to Vietnam and lessened its dependence on China, which was the subject of an earlier trade war. Oregon’s senior senator Wednesday said in a statement the tariffs would have consequences for apparel industry jobs and the state’s economy. “These incoherent and destructive Trump tariffs leave no shortage of economic casualties in Oregon, and that obviously includes the painful fallout for the jobs and revenue generated by our state’s world-renowned sportswear industry, standout agricultural sector and much more,” said Sen. Ron Wyden, a Democrat and ranking member of the Senate Finance Committee. “I will not stop fighting this asinine excuse for a strategy concocted by Trump and congressional Republicans all too willing to endorse this economic madness.” Shawn Narancich, an analyst at the Portland investment firm Ferguson Wellman, doesn’t think the tariffs will spur domestic manufacturing. “Companies like Nike are going to see this as temporary,” he said. “We don’t have the labor capacity to scale manufacturing and companies aren’t going to make that investment because nobody thinks this is going to stick. It’s headline grabbing.” While the tariffs could be temporary, they’ll still be costly. Alex Harding, another Ferguson Wellman analyst, said he expects companies like Nike will absorb some of the new costs and pass the rest to consumers. “It’s a mix of both,” he said. “But it’s certainly going to be an impact to Nike’s earning in a negative way. And it’s going to be an impact to a consumer – higher prices.”
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