Nike and Adidas Should Be Safe From Tariff Hikes Should Trump Just Do It — Panjiva


Nike and Adidas Should Be Safe From Tariff Hikes Should Trump Just Do It

China 1760 Cons. Discr. - Apparel 214 U.S. 3301 Vietnam 155

Sportswear maker Nike has reported better-than-expected earnings, S&P Global Market Intelligence reports, but has maintained full year guidance (implicitly cutting rest-of-year). Foreign exchange “headwinds” caused by the widening tariff war between the U.S. and China is cited as a major reason for the change. So far the direct impact on duties should be minimal as most apparel lines have yet to face tariffs, as outlined in Panjiva research of 9/24.

Furthermore Nike’s reliance on China, like it’s peers, has declined over time as apparel and footwear manufacturing has headed overseas. Panjiva data shows that China accounted for 38.0% of U.S. apparel and footwear imports in the 12 months to July 31 vs. 46.0% in 2012 while exports from Vietnam reached 16.5% in the past 12 months from 9.3% in 2012.


Chart segments U.S. imports of apparel and footwear by origin on a monthly (dotted) and annual average (solid) basis.   Source: Panjiva

Additionally Nike has a similar sourcing structure to its competitors including Adidas and Under Armour with 16% of seaborne shipments from China (10% for Adidas and 11% for UA) and 22% from Vietnam (44% Adidas, 24% for UA) . That reduces the competitive advantage the firms face relative to each other from a cost perspective. Skechers may be at a competitive disadvantage with 30% of its imports having come from China.


Chart segments U.S. seaborne imports by consignees associated with Adidas, Nike, Skechers and Under Armour in the past 12 months, denominated in TEUs. Source: Panjiva

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