Shares in many major consumer brands plunged on Thursday, the day after President Trump announced steep tariffs on countries that produce lots of shoes and clothing, such as Vietnam, Indonesia and Cambodia.
Many sportswear brands had shifted production away from China, after Mr. Trump ramped up tariffs on the country during his first term, and toward other countries in the region. Now, those countries also face punishing tariffs on the goods they sell in the United States.
Shares of Nike tumbled 13 percent, to their lowest level since 2017. Nearly all of Nike’s footwear and apparel are manufactured outside the United States. For example, factories in Vietnam produce about half of the Nike brand’s shoes.
Lululemon, the Canadian brand known for its leggings, dropped 13 percent. Many of its products are manufactured in Vietnam, Cambodia, Sri Lanka and Indonesia.
Germany’s Adidas slumped nearly 12 percent. Vietnam is its largest sourcing country, accounting for 27 percent of the firm’s volume last year.
Puma, another German brand, fell 11 percent. Much of its manufacturing is outsourced to six countries: China, Vietnam, Cambodia, Bangladesh, Indonesia and India.
JD Sports, a British retailer, fell nearly 8 percent.
The pain also hit the higher end of the retail market. Shares in the luxury British brand Burberry dropped 10 percent, while France’s Kering (parent of Gucci and others) lost more than 7 percent and LVMH fell more than 5 percent.
Shares in Pandora, a Danish jeweler that makes its products in Thailand, dropped 11 percent. The company said in a statement that, without mitigating actions, tariffs would cost it an extra $178 million per year. Some of the cost derives from the fact that the goods Pandora sells in Canada and Latin America are distributed via the United States, something it expects to fully address in the next year.