In the intricate world of global trade, the supply chain of sports shoes emerges as a significant focal point amid Trump’s tariff war. This article, aimed at US high school students, delves into the complexities of trade and specialisation, highlighting the challenges faced by brands like Nike. Special focus is granted to supplier-factories in Vietnam, which are central to the discourse on tariffs and imports.
Nike, a giant in the footwear industry, has numerous supplier-factories located in Vietnam, a country that plays a pivotal role in its production chain. The tariffs levied on goods imported from Vietnam significantly affect the economics of the sports shoe market, where billions of dollars’ worth of imports flood the US from this Southeast Asian nation.
The recently imposed tariffs particularly disadvantage Nike compared to competitors like Puma and Adidas, reflecting the intricate balance of global supply chain dependence. With a staggering percentage of US footwear imports sourced globally, the ramifications of these tariffs echo through the market, signalling potential shifts in consumer prices and supplier practices.
This article explores the impact of Trump’s tariff war on the supply chain of sports shoes, focusing on Nike’s reliance on Vietnamese factories. It discusses the tariffs on imports from Vietnam, highlighting the scale of footwear imports and why Nike is more affected by these tariffs than competitors like Puma and Adidas. This context is used to educate high school students about trade and specialisation in economics.
The article underscores the critical implications of Trump’s tariffs on sports shoes, specifically illustrating how they primarily impact Nike’s supply chain. The connections between tariffs, imports, and international trade highlight the complexities of modern economics and the challenges faced by major brands. Students are encouraged to engage with these themes to better understand the nuances of trade and supply chains in a real-world context.
Original Source: www.ft.com
