By Claire Moraa
- Sneaker brands that depend on outside manufacturers may have to adjust their prices upwards due to the recent tariffs
- The high tariffs have already hit brands like Nike, whose stock dropped by 14.4%
If you’re a sneakerhead, better cherish and take care of the pairs you already have because you’re in for a bumpy ride. Trump’s tariffs is the current song on repeat for everyone and it’s not because of its melodious tunes. The imposition of tariffs and trade tensions have disrupted global supply chains and trade relationships. Nike (NKE -0.07), Adidas (ADS.DE -0.46) and PUMA (PUM.DE +0.26) are at the top of the list with tanking stocks at 14.4%, 11.7% and 11.1% respectively.
Why This Matters: In these situations, companies are quick to reassess their manufacturing and sourcing strategies, potentially leading to shifts in production locations or supply chain structures. At the moment, it may seem like China is the biggest enemy and any brand that manufactures from them is bound to suffer the most but this is not the case. Even though most brands already shifted their manufacturing from China, these other countries like Vietnam have not been spared from the Trump tariffs. In fact, it has been hard-hit with one of the highest tariffs at 46%.
Because major brands rely heavily on these countries for manufacturing, the consumers will be affected. And with the high inflation rates, the price gap between counterfeit and authentic sneakers will widen leaving consumers with the obvious choice of going for fake kicks. America already has 80% of counterfeit shoppers so if the prices go up, this number might go up.
What’s Next: It goes without saying that you should already be taking care of any pair of sneakers you have but now, more than ever. As far as the tariff wars play out waiting for who will blink first, sportswear giants may either pass on the price hikes to consumers or look for new ways to streamline operations while cushioning the consumers. If the trade tensions persist, we could witness a major shift in the lines of innovation or even changes in product lines.
CBX Vibe: ‘Stepped On My J’z’ Nelly, Ciara, Jermaine Dupri
