Trump’s tariff on Vietnam can raise the prices of shoes, furniture and games

Retail and brands have turned into Vietnam to manufacture goods from sports shoes to sofas while transporting some or all production outside China.

For years, the southern Chinese neighbor has become a common alternative to companies trying to avoid the rapid launch of American trade tensions with Beijing. Now, as president Donald Trump Expand TariffsThey can no longer direct.

Trump said he would put a 46 % duty on imports from Vietnam as part of a new wave of international drawings announced on Wednesday. This may soon increase the costs of major companies in the space of clothing, furniture and gaming space, some of which may go through increases for consumers in the form of high prices. Customs duties enter Vietnam on April 9.

China has exported more goods to the United States more than any other country for more than two decades, but Mexico China crossed As a higher source in 2023. China is now The second largest resource For the United States, the goods are worth $ 438.9 billion in 2024, according to government data from the US Trade Representative Office.

For companies looking to diversify the countries on which they depend on production and reduce the risks of commercial conflicts with China, Vietnam has become a common place to go. Imports from Vietnam grew to $ 136.6 billion in 2024, an increase of about 19 % of 2023, according to the US Trade Representative Office.

On the other hand, imports from China increased by only 2.8 % from 2023 to 2024, according to government data. Imports from China decreased about 18 % last year compared to 2022, when the United States brought 536.3 billion dollars of goods from the country.

Duties will strike companies at a time when many consumers have become Conscious and selective value on spending Because of the constant inflation and concerns about the economy. Although it is not clear now companies that will raise prices due to definitions, companies may be hesitant to withstand higher costs as you expect dull spending in the coming months.

Some of the names of the families will feel the tank from the Vietnam tariff. Nike Manufacturers are about half of their shoes in China and Vietnam, with about 25 % of Vietnam. A White House official told CNBC that Trump would put a 34 % tariff at the top of the current 20 % duties on imports from China, at a clear rate of 54 %.

The customs duties will be the other opposite winds for giant sport shoes and sportswear, which have already provided disappointing forecasts for the current quarter. This guidance, which Low sales percentage projects from two numbers In the three -month period, the estimated effect of definitions on imports from China and Mexico included.

Extensive definitions can stop or Nike efforts to revive its brand and improve sales under the new CEO ELIOTT Hill, an old warrior in the company who Take the last fall head.

Nike shares fell more than 6 % in expanded trading on Wednesday. Adidas The main shoe players also depend greatly on Vietnam.

Adidas said it would evaluate the definitions and monitor how it affects its work. Nike immediately did not respond to CNBC’s request for comment.

Nearly a third of the shoe imports in the United States came from Vietnam in 2023, which is the latest full year data available, according to shoe distributors and retail dealers in America, a commercial group in industry.

Steve MaddenFor example, he said in a call call in early November that it would turn its imports to the United States from China By 45 % Next year. The shoe maker released this announcement a few days after Trump’s presidential victory, following the promise of his campaign to impose a severe tariff on countries like China.

However, CEO Edward Rosenfield said at the time at Cambodia, Mexico and Brazil, CEO Edward Rosenfield said at the time to invite Cambodia, Mexico and Brazil, CEO Edward Rosenfeld said at that time in Campodia, Mexico and Brazil, CEO Edward Rosphield said at that time at the profit call, if one of Steve is one of Steve Maden has accelerated her transfer to Vietnam, along with Cambodia, Mexico and Brazil.

It was Vietnam The second largest country For Mordi Ug and Mother’s Company Deckers brands As of this month. The company includes 68 partners for the supply chain in Vietnam, which is only exceeded by 125 suppliers in China. Decrez shares decreased nearly 9 % in extended trading. The company did not immediately respond to a request for comment.

VF Corporation,, Which consists of brands for shoes, clothing and accessories including The North Face, Timberland, Vans and Jansport, enjoy a great dependence on China and Vietnam as well. About 38 % of its suppliers in China and 17 % in Vietnam, adding up to 55 % of exposure throughout the two countries, according to the detection of manufacturing from December.

The shares of the company fell by more than 8 % in trading on Wednesday. VF refused to comment, noting a quiet period before the next profit report.

The furniture industry also raised its dependence on Vietnam.

In 2023, 26.5 % of US furniture imports from the country came near 29 % coming from China, according to data from the House Furniture Association, a commercial group that fixes on behalf of the retailers of home commodity. The group cited investment banking services, Man, Hermesid and Iberson – one of the best data industry sources.

Completely, this means that about 56 % of American furniture imports come from both regions combined.

On a profit call in February, Wayfair CEO Niraj Shah said that the shift to countries outside China was a “increasing trend” since Trump enacted a tariff during his first administration.

He said that places like Cambodia, Indonesia, Thailand, the Philippines and Vietnam “have grown as places where people are factories and where our goods come from.”

Wayfair shares decreased by 12 % in extended trading. In a statement, Wayfair said he was “closely monitoring the advanced trade scene.” The company added that it is “in a good position to continue to provide the best possible collection of value, formations and experience.”

Vietnam game makers have bent to create more goods imported and sold to children and adults throughout the United States HasbroSpinmaster, Mattel Crewla is among the companies that run with GFT Group, one of the largest game manufacturers in Southeast Asia.

In addition to the long -running manufacturing facilities in China, GFT currently has five production facilities in northern Vietnam that employ more than 15,000 workers.

In a call in early March, Funko Financial Director Eve Leibandin said that the company, which is famous for its large -eyed plastic holders called fixed organic pollutants, was working hard to control what was possible next year. This includes an attempt to compensate for the customs tariff by “the costs of the factory re -negotiation, and accelerate our transformation in production to other sources identifying countries, and implementing pricing modifications.”

On the call, he said that about a third of Funko’s global products come from China. The countries that Funko had been transmitting did not call production, but it is a client of the GFT Group.

They did not respond immediately for CNBC requests to comment.

Curtis McGill is the co -founder of Hey Buddy Hey Pal, a gaming company specialized in egg decorating groups. He said he expected the tariffs to raise 46 % of the costs of games in the United States, but companies are likely to negotiate with suppliers in Vietnam to try to reduce these increases.

“Many manufacturers and actual gaming companies have already had conversations with manufacturing factories that have to help in some respects, because gaming companies are under pressure to try to maintain prices on this aspect of retailers,” McGill said.

For companies, including clothing makers, the new tariff policies raised questions about whether it was – and where – to move their manufacture. Last month, he asked an investor American eagle traders About Vietnam’s exposure to her latest profit call.

Financial manager Michael Mattayas said that the production of jeans and brand clothing is similar in Vietnam and China, with “high teenagers to 20 %” of production in both countries. He said that the company aims to trim this to the number one in the half -year.

The shares of the American eagle fell more than 5 % on Wednesday. The company did not immediately respond to the CNBC request for comment.

However, Mathias and American Eagle, CEO of Eagle Jay Schottstein, said in the company’s last profit call that it would be important to stay in the place of staying, while waiting to know how to play definitions and any countries that will be targeted.

SchotTenstein referred to eight years ago during the first Trump administration, when the American Eagle also faced challenges and had to discover a new plan.

Shottinstein said there is another coming shift, but “no one knows what the story is yet.”

“I will not rush,” he said. “You are rushing, where do I hurry? I don’t know where to rush.”

Peter Pom is the Financial Director and Operations Manager at Baum Essex, a New York -based manufacturer with licenses to make products for brands such as NAUTICA, Betsey Johnson and Steve Madden. During the first Trump administration in 2019, Boom was transferred from China to the Philippines, Cambodia, Vietnam and India.

He told CNBC on Wednesday that mutual definitions will cause significant damage to his company.

“This is how global depression begins,” Baom said.

CNBC Sarah WhitenJason Gewirtz and Eamon Javers contributed to this report.