Nike, Adidas, and other sportswear brands may face challenges as the US considers tariffs on imports from Vietnam.

The decision, expected Apr. 2, is part of President Donald Trump’s efforts to boost domestic production and address trade imbalances. Vietnam has a US$123.5 billion trade surplus with the US, making it a likely target.

Nike produces 50% of its footwear and 28% of its apparel in Vietnam, while Adidas sources 39% of its footwear and 18% of its apparel there.

Smaller brands like On rely even more, sourcing 90% of their shoes and 60% of their apparel from Vietnam.

Current US tariffs on Vietnamese footwear average 13.6%, while apparel faces an 18.8% rate. Any increase could raise costs for brands and lead to price hikes amid low consumer confidence.

Nike, already struggling with market share losses, has projected revenue declines, and more tariffs could worsen its situation.

Moving production is costly and complex, especially as other Southeast Asian countries like Cambodia and Indonesia may also face tariffs.

Vietnamese leaders are taking steps to mitigate the impact by increasing US imports, reducing duties, and expanding US business opportunities in Vietnam.