Major footwear and apparel brands, including Nike and Adidas which outsource a large portion of their output from Vietnam, are asking U.S. President Donald Trump for a tariff exemption due to concerns over looming cost surges and business shutdown.
In its request letter sent to the White House this week, the Footwear Distributors and Retailers of America said that Trump’s so-called reciprocal tariffs pose an “existential threat” to the footwear industry.
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The letter was signed by 76 footwear brands, including Nike, Adidas, Skechers, and Under Armour.
“Many companies making affordable footwear for hardworking lower and middle-income families cannot absorb tariff rates this high, nor can they pass along these costs. Without immediate relief from the reciprocal tariffs they will simply shutter,” reads the letter, which is dated April 29.
Trump’s wide-sweeping tariffs, announced on April 2, included levies on several countries that are important sources for footwear suppliers, including China, Vietnam and Cambodia. He said he would levy massive 46% tariffs on imports from Vietnam as part of a new wave of global impositions.
Trump on April 9 dropped his reciprocal tariffs for countries reaching out to the U.S. to negotiate to 10% for 90 days. The 90-day reprieve is applied to nearly 90 nations except for China.
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Vietnam is currently Nike’s largest supplier of both footwear and apparel, accounting for 50% and 28% of the brand’s global output, respectively, according to the U.S. firm’s 2024 annual report.
As of end-January, 98 Nike suppliers operated in Vietnam, with a total of 162 factories and 493,000 workers. Major Nike suppliers in the country include Huali, Taekwang, Feng Tay, Chang Shin, Pou Chen, Ching Luh, Far Eastern, Paiho, Avery Dennison, and Regina Miracle.
Vietnam is also Adidas’s largest sourcing country, contributing 27% of the German sportswear giant’s total product volume in 2024, up from 26% in 2023, according to its performance review.
In terms of footwear, Vietnam was the largest producer, making up 39% of Adidas’s global output, followed by Indonesia at 32% and China at 14%.
For apparel, Vietnam ranked second with 18% of the total production, while Cambodia led with 23% and China followed in third with 16%.
Last year, Vietnam’s footwear and apparel exports to the U.S. reached $24.5 billion, according to the Vietnam Customs.