Donald Trump’s duties hit Nike’s business.
Sports equipment manufacturer Nike is in trouble due to Donald Trump’s customs rules, Nbc reported.
The market for sporty leisure shoes is up to $ 70 billion worldwide. However, the shoes are mainly made in Asia, so their importation will be much more expensive in the future.
In particular, the rise of customs fees hurts US small businesses that specialize in the sale of sneakers.
– These duties are ridiculous. They make no sense, the shoe retailer Devlin Carter streamlines for NBC.
– Small businesses have to pay these duties, and that’s not a little thing. That’s a lot. I can’t see that this would be a good thing for anyone, Carter wonders.
Nike shoe business is estimated to suffer from customs bomb. Most of Nike’s products are manufactured in Vietnam, which was determined by 46 % duties and in Taiwan, which received 32 % duties.
Economist Peter Schiff wrote in X last week that Nike does not believe his own factories in the United States either.
– It would result in more expenses than customs. In addition, Nike must remain competitive in markets other than the United States. The end result is that fewer sneakers are sold in the US, but at a much more expensive price, Schiff predicts.
Nike’s business has been in trouble even before Trump’s uproar decisions. In November 2021, the price of the Yankee brand share was still $ 177 ($ 160), while now it is only $ 53 ($ 48).
Nike stores will soon increase prices in the United States. Aop