US-Vietnam Trade War: Who Suffers and Who Profits?
Ready for another trade chaos? US President Donald Trump just dropped a bomb on Vietnam! He imposed a 20% tariff on a large number of Vietnamese imports, and a whopping 40% tariff on goods transshipped through Vietnam from third countries! Is this the beginning of the end for big brands like Nike and Adidas?
Vietnam: The World’s Factory
Vietnam has become a major player in manufacturing sports footwear and apparel. Nike produced about 50% of its footwear there last year, while Adidas sources 27% of its production from Vietnam. But here’s the catch — a large portion of materials like yarn, polyester fabrics, and buttons are imported from China.
Tariffs and Transshipment – Supply Chain Chaos
The Trump administration has tightened rules on transshipment — the practice where goods are mostly made in China, then minimally processed or repackaged in Vietnam and exported as Vietnamese products. US customs now views this as a form of cheating and plans to impose high tariffs on such goods.
Professor Sheng Lu from the University of Delaware warns that the situation is confusing, and mixing transshipment rules with rules of origin will only add more uncertainty and disrupt already fragile supply chains.
Who Will Pay the Price?
Nike and Adidas are in trouble as production in Vietnam will become more expensive and possibly less profitable. The trade war between the US and China has already disrupted global supply chains, and now Vietnam is caught in the crossfire.
What’s Next?
Will brands start looking for new production destinations? Will prices of sports footwear and apparel skyrocket? And will Trump’s policy ultimately hurt American consumers?
This is just the beginning, and we’ll be watching how this trade drama unfolds. What do you think — smart move or just another trade mess? Drop a comment and let’s see who’s for and who’s against!
