Oregon鈥檚 athletic apparel industry is already seeing impacts after President Donald Trump imposed high tariffs earlier this week.
The stock price of Beaverton-based Nike dropped sharply in response to the news that tariffs against Vietnam would rise 46%. Footwear company Adidas, which has its North American headquarters in Portland, also saw its share prices decline notably in response to the news. Shares of Portland-based Columbia Sportswear also saw a significant dip after the announcement.
Nike produced half of its footwear in Vietnam last year and 27% in Indonesia, according to its 2024 annual report. Indonesia could see an additional 32% in tariffs on its goods to the U.S. Adidas produces about 39% of its footwear in Vietnam. Columbia manufactures 95% of its footwear in Vietnam and China.
Matt Priest, President and CEO of , said that companies like Nike have been diversifying supply chains from China to other Asian countries like Vietnam, Indonesia and Cambodia for more than a decade. That shift was accelerated after President Trump imposed tariffs on China in 2018.
鈥淚n 2009, 88% of all shoes sold in the US came from China,鈥� Priest said. 鈥淔ast forward to last year, and that number is now 56%.鈥�
Investors and companies expected tariff increases on China, but President Trump鈥檚 steep levies on other key manufacturing hubs like Vietnam and Cambodia were unexpected and have left companies scrambling. The tariffs are 鈥渃atastrophic鈥� for the footwear and apparel industries, Priest said.
Companies will likely absorb some of the costs rather than pass the total increase onto consumers. But, Priest said, it鈥檚 unlikely they will be able to avoid raising prices entirely.
鈥淚f you have a duty rate on a pair of sneakers out of Vietnam, that was 20%, now being 66%, that鈥檚 going to be really challenging to figure out from a costing perspective,鈥� he said.
Apparel and footwear prices will likely increase by the back-to-school shopping season in the fall, which is a major sales time for these companies. According to Priest, it鈥檚 not yet certain exactly how much the sticker price jump will be for the average pair of shoes, but it鈥檚 safe to say they鈥檙e going to be dramatic鈥� if tariffs hold.
Nike has not responded to requests for comment.