Trump tariffs in Vietnam can increase shoes, furniture, toys

Retherals and brands turned to Vietnam to produce the sneakers to the sofa, moving some or all production from China.

For many years, the southern neighbor of China has become a popular alternative for companies trying to avoid interstitating US tensions with Beijing. Now as president Donald Trump expand Its tariff targetsThey can no longer manage clearly.

Trump said he would impose 46% of Vietnam import duty as part of the new wave of world beatings announced on Wednesday. This may soon raise the cost of large corporations in clothing, furniture and toy space, and some of them can convey to consumers this increase in prices. Vietnam tariffs come into force on April 9.

China has exported more goods to the US than any other country for over two decades but Mexico surpassed China as the main source in 2023. China now The second largest supplier In the United States, in 2024, in 2024, it was $ 438.9 billion, according to government data from the US trade representative.

For companies that resorted to the diversification of the countries they count on production and reduce the risks of trade conflicts with China, Vietnam has also become a popular place. Imports from Vietnam increased to $ 136.6 billion in 2024, which is approximately 19% compared to 2023, the US trade representative reports.

On the other hand, according to state data, imports from China only increased by 2.8% from 2023 to 2024. Last year, imports from China decreased about 18% compared to 2022, when the US brought $ 536.3 billion from the country.

Duties will beat companies at a time when many consumers became value and electoral about costs of -permanent inflation and concern for the economy. Although it is now unclear which companies will raise the prices from the tariffs, businesses can be reluctant to take higher costs as they predict insufficient costs in the following months.

Some home use names will feel the fares on Vietnam. Nike Manufacturers of about half shoes in China and Vietnam, approximately 25% from Vietnam. Trump will put the tariff by 34%, except for the existing 20%of China import duties, 54%at the obvious rate, the White House official said CNBC.

The tariffs would be another council for the giant -streets and sportswear, which has already set a disappointing forecast for the current quarter. This is a guide that Projects of double -digit percentage decline in sales In the three -month period, he included the estimated impact of tariffs on imports from China and Mexico.

Expanded tariffs can stop or slowly Nike’s efforts revive their brand and improve sales within the new CEO Elliot Hill, a veteran of the company that, which took the helm last fall.

Nike shares decreased by more than 6% in advanced trade on Wednesday. Adidas And other large shoe players are also largely based on Vietnam.

Both companies did not immediately respond to CNBC’s request for comment.

Almost a third of the US shoe imports came from Vietnam in 2023, the latest full -year data, according to shoe distributors and America’s sellers, industry trade group.

Steve MeddenFor example, in early November stated that he would cut his imports to the US from China on as much as 45% over the next year. The creator of the footwear made this announcement a few days after the victory of President Trump, following his campaigning promises to impose steep tariffs on countries such as China.

However, one of the countries Steve Medden accelerated his move to Vietnam, together with Cambodia, Mexico and Brazil, said Edward CEO Edward Rosenfeld at the time by calling.

Vietnam was The second largest country for the suppliers Parental Company Ugg and Hoka Brands Deckers As of this month. The company has 68 Vietnam supply chain, which exceeds only 125 suppliers in China. Deckers shares decreased by almost 9% in expanded trading. The company did not immediately respond to a comment request.

VF Corporationconsisting of shoes, clothing and accessories, including North Face, Timberland, Vans and Jansport, also has great dependence on China and Vietnam. About 38% of its suppliers are in China and 17% in Vietnam, which is up to 55% of the exposition in two countries, production reports since December.

The company’s shares decreased by more than 8%on Wednesday. VF refused to comment, citing its quiet period before the future income report.

The furniture industry also increased its dependence on Vietnam.

In 2023, 26.5% of US furniture imports came from a country close to 29% coming from China, according to the Home Furniture Association Association, a trading group that lobbying on behalf of shopping stores. The group referred to the Mann investment bank firm, Armistead & EPERS – one of the main sources for data.

In total, this means that about 56% of US furniture imports come from both regions.

By calling for income in February, Wayfair Nira Shah, CEO, said the transition to countries outside China has become a “growing trend” since Trump has accepted tariffs during his first administration.

He said places such as Cambodia, Indonesia, Thailand, Philippines and Vietnam, “grew like places where people have factories and where our goods come from.”

Wayfair’s action plunged about 12% in advanced trade. In his statement, Ueffer stated that “attentive monitoring is developing a trading landscape.” The company added that “it is well posted to continue to offer customers the best combination of value, range and experience.”

Sailors with toys also leaned toward Vietnam to make more goods imported and sold to children and adults throughout the United States HasbraSpinner, Motel And Crayola – one of the companies working with the GFT Group, one of the largest toy manufacturers in Southeast Asia.

In addition to the long -created production facilities in China, now GFT has five production facilities in the northern Vietnam with more than 15,000 workers.

To the call in early March, Fund Yve Leabondeven’s chief financial director said the company, which is known for its plastic collective items called POPS, worked on controlling what could next year. This includes an attempt to compensate for the tariffs, “talking to the plant, accelerating our transition to other countries of search and implementing pricing adjustments,” he said.

Calling, he said that approximately a third of the Funko Food Purchase Products Come from China. It did not name the countries in which the movements are production, but it is a GFT Group client.

These Takhaws did not immediately respond to CNBC requests for comment.

Curtis McGill-founder Hey Buddy Hey Pal, a toy company that specializes in easter egg decoration kits. He said he expects 46% of tariffs to raise toys in the US, but the added companies will probably negotiate with Vietnam suppliers to try to soften these hiking.

“A lot of manufacturers and actual toy companies are already talking to production plants that should help in some respects because toy companies are putting pressure to try to keep prices on this side from retail sellers,” McGill said.

For companies, including clothing manufacturers, a new tariff policy has raised questions about whether and where they potentially move their production. Last month the investor asked American Eagle Outfitters About the impact of Vietnam on the most recent call.

Chief Financial Director Michael Matthias said the production of jeans and clothing is similar in Vietnam and China, with “high teenagers up to 20%” production in each of these countries. He said the company was trying to trim this by a clear back half of the year.

More than 5%dropped on Wednesday. The company did not immediately respond to CNBC’s request for comment.

Still, both Mathias and the CEO of American Eagle Jay Shuttenshtein said that the company’s last call would be very important to remain flexible, waiting to learn how the tariffs will play out and what countries will be aimed at.

Shottenstein referred to eight years ago during the first Trump administration when the American Igl also faced problems and had to find out a new plan.

Shottenstein said there was another change, but “no one knows it’s a story.”

“I wouldn’t hurry,” he said. “You go where I hurry? I don’t know where I am in a hurry.”

Peter Baum Baum Financial Director and Chief Director for Operation Baum Essex, manufacturer of the New York manufacturer with licenses for products for brands such as Nautica, Betsey Johnson and Steve Madden. During the first Trump administration in 2019, Baum transported factories from China to Philippines, Cambodia, Vietnam and India.

On Wednesday, he said CNBC that mutual tariffs would cause great damage to his company.

“That’s how you start global depression. In 80 years and five generations, Trump just excluded us from business,” Baum said.

– CNBC Sarah WittenJason Gurt and Eiman Jours contributed to this report.