Retailers that moved their supply chains to Vietnam from China in a bid to avoid a trade war between the U.S. and Beijing are now facing a heavy blow as President Donald Trump imposes a 46% tariff rate on Hanoi. Vietnam became a popular alternative for low-cost manufacturing in recent years as companies sought to minimize trade risk with China. Imports from Vietnam totaled $136.6 billion in 2024, reflecting a 19.3% increase from a year earlier, according to the Office of the U.S. Trade Representative . However, the new duties on imports from Vietnam could translate into higher costs for these consumer-oriented names, resulting in price hikes for shoppers. Consider that 88% of running shoe company On Holding ‘s sourcing comes from Vietnam, according to estimates from Stifel. Shares tumbled nearly 14% on Thursday, and the stock is off almost 30% in 2025. Deckers Outdoor is another shoe manufacturer heavily reliant upon Vietnam for its supplies. The maker of Ugg boots has 64% sourcing exposure to the southeast Asian country, with another 20% stemming from China. Shares fell nearly 15% on Thursday, touching their lowest level since November 2023. Crocs and Nike also have around 44% supply exposure to Vietnam alone. Shares of the two companies plunged 15% and 11%, respectively, on Thursday. Lululemon Athletica draws upon around 40% of its sourcing from Vietnam, per Stifel. CEO Calvin McDonald told investors on March 27 that while the Canada-based company expects only a small hit to profits in a trade war, this statement was made prior to the expansion of tariffs to include Vietnam and other southeast Asian countries that total more than half of Lululemon’s sourcing. Shares of Lululemon dropped 11% Thursday. — CNBC’s Michael Bloom contributed to this report. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
