Welcome to the new chaos in global trade! The US administration under Trump has decided to impose a 20% tariff on a large number of imports from Vietnam, and if goods are considered “transshipment” from third countries, the tariff jumps to a whopping 40%! What is “transshipment”? It’s when a product is mostly made in China, then shipped to Vietnam, repackaged, and exported as if made there. Now, imagine Nike and Adidas, giants in sportswear, who produce about 50% and 27% of their footwear in Vietnam, facing massive uncertainty. Vietnamese factories rely heavily on Chinese components like yarn, buttons, and zippers, and it’s unclear if such products will be subject to transshipment tariffs. Experts warn this confusion could seriously disrupt global supply chains and increase risks for consumers. Trump’s policy, aimed at reducing dependence on China, now casts a shadow over the entire Southeast Asian region and threatens to hit consumers’ wallets worldwide. Will Nike and Adidas manage to navigate this trade mess, or will we all pay the price? Drop a comment if you think this is just the start of trade chaos or maybe an opportunity for new market players!
US Vietnam Trade War: Who Suffers – Nike and Adidas!
