File: Workers in the Maxport Factory, which produces in Hanoi Activewear for various textile clothing stamps.
Nhac Nguyen | AFP | Getty pictures
Retailers and brands have contacted Vietnam to produce goods from sneakers to sofas while moving some or all production from China.
For years, China's southern neighbors became a popular alternative for companies that tried to avoid the crossfire of the US trade voltages with Beijing. Now, when President Donald Trump extends his tariffs, they can no longer control clearly.
Trump said that he would bring an obligation of 46% to Vietnam as part of a new wave of global levies that were announced on Wednesday. This could soon increase the costs for large companies in clothing, furniture and toy areas, and some of them can hand over these increases to consumers in the form of price hikes. The tariffs on Vietnam come into force on April 9th.
China has exported more than two decades to the USA than in any other country, but Mexico exceeded China as a top source in 2023. China is today the second largest supplier in the USA and took into account in 2024 in the amount of $ 438.9 billion.
For companies that have tried to diversify the countries to which they rely on production and reduce risks from trade conflicts with China, Vietnam has also become a popular place. In 2024, imports from Vietnam rose to $ 136.6 billion, which, according to the office of US trade representative, rose by around 19% compared to 2023.
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On the other hand, according to the government, imports from China only rose by 2.8%from 2023 to 2024. Imports from China decreased by around 18% last year compared to 2022, when the United States had brought in 536.3 billion US dollars from the country.
The obligations will affect companies at a time when many consumers have become value -conscious and selective due to persistent inflation and concerns regarding the economy. While it is now unclear which companies will increase the prices due to the tariffs, companies may be able to owe the higher costs because they predict lack of expenses in the coming months.
The companies most susceptible to Vietnamzölle
File: An employee of the Maxport Factory, which produces in Hanoi Activewear for various textile clothing stamps.
Nhac Nguyen | AFP | Getty pictures
Some well -known names will feel the pinch of Vietnam tariffs. Nike Manufacturers about half of its shoes in China and Vietnam, about 25% from Vietnam. Trump will set a tariff of 34% in addition to the existing 20% tasks for imports from China for an obvious rate of 54%, an official from the White House told CNBC.
The tariffs would be another headwind for the sneaker and sports cladding giant, which already provided a disappointing forecast for the current quarter. This guide, which forecasts a double -digit percentage drop in sales in the three -month period, included the estimated effects of tariffs on imports from China and Mexico.
Extended tariffs could revive the efforts of Nike to revive its brand and to turn sales as part of its new CEO Elliott Hill, a veteran of the company that took over last autumn, to improve sales and to improve sales.
The Nike shares fell by more than 6%on Wednesday. Adidas And other big shoe players also rely on Vietnam.
Adidas said it would evaluate the tariffs and monitor how they will affect business. Nike did not immediately respond to CNBC's request for comment.
Almost a third of the shoes in 2023 came from Vietnam from Vietnam, the latest available overall year, which according to the shoes and retailers of America, an industry trading group.
Steve Madden, for example, said in a profit call in early November that it would reduce its imports from China from China by up to 45% next year. The shoe manufacturer made this announcement just a few days after Trump's presidential victory after his campaign lane promised to impose strong tariffs like China.
But one of the nations that Steve Madden accelerated his change in Vietnam together with Cambodia, Mexico and Brazil, said CEO Edward Rosenfeld at the time on the winning call.
Vietnam was the second largest country for suppliers of UGG and Hoka mother company Deckers brands From this month. The company has 68 supply chain partners in Vietnam, which are only exceeded by its 125 suppliers in China. The Deckers shares decreased by almost 9% in extended trade. The company did not immediately answer a request for comments.
The words 'Made in Vietnam' sit on a Puma training in the desk.
Bloomberg | Bloomberg | Getty pictures
VF CorporationThis consists of shoe, clothing and accessories such as North Face, Timberland, Vans and Jansport, also in China and Vietnam. About 38% of the suppliers are in China and 17% in Vietnam and give 55% of the exposure in the two countries.
The company's shares decreased by more than 8% on Wednesday. VF rejected a statement and quoted his quiet time before his upcoming winning report.
The furniture industry has also reinforced its dependence on Vietnam.
In 2023, 26.5% of US furniture imports came from the country, close to the 29% from China, according to the data of the Home Furishing's Association, a trading group that turns on on behalf of retailers for household goods. The group quoted the investment banking company Mann, Armistead & Epperson -one of the top data from the furniture industry for data.
Taken together, this means that about 56% of US furniture imports from both regions are combined.
On a win in February, Wayfair CEO Niraj Shah said that the relocation to countries outside of China had been “a growing trend” since Trump enacted tariffs during his first administration.
He said places like Cambodia, Indonesia, Thailand, the Philippines and Vietnam “have grown as places where people have factories and where our goods come”.
Wayfair's share dropped by about 12%in extended trade. In an explanation, Wayfair said that “the developing trade landscape is closely monitored”. The company added that it was “well positioned to continue to offer customers the best possible combination of value, range and experience”.
Jommacher also undergone Vietnam to do more goods that are imported and sold to children and adults in the USA HasbroSpinmaster, Matt And Crayola are among the companies that work with the GFT Group, one of the largest toy manufacturers in Southeast Asia.
In addition to the long -established production facilities in China, GFT currently has five production facilities in Nordvietnam, which employ over 15,000 employees.
When calling in early March, Radioo Yves Lependeven Yves, Chief Financial Officer, said the company, which is known for its large -eyed plastic collectibles called Pops, is working hard to control what it could be in the coming year. This includes trying to do the tariff by “renegotiating the factory costs, the acceleration of our production change into other procurement countries and the implementation of price adjustments,” he said.
On the call, he said about a third of the global product purchases from Funko from China. He did not name the countries in which Funko produced, but it is a customer of the GFT Group.
These judicial manufacturers did not immediately respond to the inquiries from CNBC for comments.
Curtis McGill is a co-founder of Hey Buddy Hey Pal, a toy company that specializes in Easter egg decoration kits. He said he expects the 46% tariff to increase toy costs in the United States, but added companies will probably negotiate with suppliers in Vietnam to try to alleviate these hikes.
“Many manufacturers and the actual toy companies have already held discussions with production facilities that have to help in some cases because the toy companies get pressure to maintain prices on this page from the retailers,” said McGill.
Where do manufacturers go next?
For companies, including clothing manufacturers, the new tariff policy has raised questions about whether – and where – their production may be able to move. An investor asked last month American Eagle Outfitters about the commitment in Vietnam in his recent commitment.
The CFO Michael Mathias said that the production of jeans and clothing stamps in Vietnam and China is similar and in each of these countries “high tones up to 20%” of production. He said the company aimed to bring this back to individual borders in the back half of the year.
The stocks of American Eagle dropped by more than 5% on Wednesday. The company did not immediately respond to CNBC's request for comment.
But both Jay Schottenstein, CEO of Mathias and American Eagle, said about the company's last income call that it would be crucial to remain flexible and to wait for how tariffs would be played out and which countries would be targeted.
Schottenstein moved into challenges eight years ago during the first Trump administration when American Eagle also faced challenges and had to find a new plan.
Schottenstein said there is still a shift, but “nobody knows what the story is.”
“I wouldn't rush,” he said. “You are hurried, where do I hurried? I don't know where I hurried.”
Peter Baum is Chief Financial Officer and Chief Operation Officer from Baum Essex, a manufacturer based in New York with licenses to produce products for brands such as Nautica, Betsey Johnson and Steve Madden. During the first Trump government in 2019, Baum relocated factories from China to the Philippines, Cambodia, Vietnam and India.
He announced CNBC on Wednesday that the mutual tariffs would harm his company massively.
“This is how they start a global depression. After 80 years and five generations, Trump simply got us out of business,” said Baum.
– Sarah Whitten, Jason Gewirtz and Eamon Javers from CNBC contributed to this report.
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