What Trump tariffs mean for Nike’s Air Jordan 1S

Nike Air Jordan 1, in some ways, Iconic US shoes. This is a popular sports line by a large American brand created for the four decades ago for the legend of their native basketball.

However, although most Nike products sell in the United States, almost all of their shoes are prepared in Asia – An area where President Donald Trump’s tariffs targeted The Salvo against foreign countries accuses Americans “knock down.”

Nike’s shares fell 14% after the announcement of tariffs on the fears that the company could have the supply chain.

So what do all this mean for the price of Nike’s shoes?

This decided how long the Nike’s growth increases, anyone or the tariffs would act as long as they really think.

Goods from Vietnamese, Indonesia and China, some of the most severe import taxes in the United States – from 32% to 54%.

The hopes remain, Trump may want to discuss these ratios lower. On Friday, he called “Vietnam’s leader” very productive “, Nike shares helped to recover after the steep Thursday waterfall.

However, most analysts think that the firm’s prices will increase.

Swiss bank UBS estimates that the price of goods from Vietnam will be 10% to 12% – half of Nike’s shoes.

Meanwhile, Indonesia and China are almost the whole balance of the production of shoes.

“The meeting is that if we take into account the wide of the tariffs, the industry will understand that the other will reduce the effects of the other part of the other part,” he said.

David Swartz, a large capital analyst in Morningstar, reduces the demand for prices, but the great price increase.

“This is a very competitive industry. My guess, Nike’s prices will be difficult for more than 10-15%. I do not think that the tariff can replace most of the tariff,” he said.

Many other Western brands such as H & M, Adidas, Gap and Lululemon will face the same difficulty.

Nike is already facing a dense bottom line.

About $ 51 billion in sales in the last fiscal year. The price of products, including products, including germs, including gaps, third party fees, gives a healthy profit margin with more than 40%.

However, this profit receives WHITTLED after adding to the price of other work operations. One-third of the income, for example, sales and administrative costs are consumed.

As a factor in interest and taxes, Nike’s profit margin shrinks about 11%.

Throughout all products, because they do not break the costs separately for different items.

Rahul Cee, the only investigation of the website of the website that works in the operating shoe is that Nike can keep retail prices down, he said.

Mr. Cee, who trains as a shoe designer and working for Nike and Vance in India, said that in the shoes of a road, he said.

“Thus, instead of using high-performance midsole foams and construction, the injection is not a molded Eva (ethylene-vinyl acetate),” he says.

Another option to update the design period every three to four years every three to four years, each option would be instead of performing a new design.

BMO Kapital Markets Managing Director Simeon Siegel, most companies viewed the announcement of “still far from the final result.”

“I don’t think that many people believe that these numbers are wearing in the stone.”

In theoretically, Nike is so large, which does not shoot prices, he hits sales, but adds them to the moment?

Before the announcement, Nike, the ability to order a full price for their shoes, faced a decrease in sales.

Finance Head Matthew Friend also asked for tariffs as an example of developments affecting consumer confidence.

And Nike, about 21.5bn (£ 16.4bn) in the largest market for sale is very confident in us with the contribution of about 21.5bn (16.4 billion pounds.4bn).

The feeling in the United States, Delaware University at Delaware University, Delaware University, Fashion and Clothing Studies at the University of Delaware Seng Lu.

However, as a result, the companies say that the data can be compelled to the consumers.

“Nike, if the tariff war continues, the prices are very likely. There is no way of brands to increase from 30% to 50% of costs.”

Adds, “US trading partners react to mutual tariff policy will also have a great impact.”

China has already returned with its own 34% tariff.

Part of the justification behind Trump’s tariff policy is that the company will want to produce the goods in the United States.

However, if Prof. Nike or other companies do not see, the supply chain is significantly in a significant time “for the complexity participating in shoe production.”

This includes the time needed to review a long list of factors in deciding where to keep their products.

The lands of the recommendation group says the lack of American weaving mill will return us to produce it “for difficult and expensive (for Nike).

Mr. Powers added: “This transition will take years and requires an important investment if it is followed.”

Nike did not respond to BBC applications for comments for this article.

We also contacted 30 providers in Asia, but none did not answer.

Natalie Sherman’s Additional Report in New York