Here’s how much more Nike’s Air Jordans could cost – Business News
Nike might need to change its slogan from Just Do It to Just Pay More.
The sneaker giant makes about half of it footwear in Vietnam, which was slapped with a 46% tax as half of President Trump’s reciprocal tariffs introduced on Wednesday.
Those trying to decide up a pair of the model’s Air Jordan 1 High sneakers could shell out an further $18 on high of their present $180 price tag after the new tariff goes into impact April 9, industry sources informed The Post.
Nike Air Jordan 1 sneakers, which cost $180 at present could increase to $198 as a result of of tariffs. Jo Gtz – stock.adobe.com
Some of Nike’s different standard sneakers could additionally spike by between $15 and $35, based on a Footwear News report.
UBS estimates that customers will see a 10% to 12% increase within the costs of items that come from Vietnam, the report stated.
A Nike sneaker that sells for $115 – just like the Nike Air Force 1 – prices the company about $18 to make at a manufacturing facility abroad, based on an industry professional who didn’t wish to be recognized.
The 46% tariff on Vietnam would add one other $8.28 to the overall cost per pair, which provides up when its multiplied by 8,000 – or the quantity of sneakers that may slot in to a delivery container.
Nike makes about half of its sneakers in Vietnam, which was slapped with a 46% tariff. Getty Images
But Nike is more likely to negotiate offers with its factories to mitigate these prices — or as many industry consultants imagine, the tariffs will change because the international locations negotiate offers.
“This is a nightmare for consumer companies,” stated the industry source. “If these tariffs remain, by summer there will be bankruptcies.”
The so-called reciprocal tariffs will go into impact on April 9. Getty Images
Nike didn’t instantly touch upon the potential price will increase.
“Most brands that manufacture primarily in China have spent the last few years attempting to diversify their supply chain,” Gary Wassner, chief govt of Hildun Corp. a lender to attire firms informed The Post. “Vietnam was one of the countries brands were trying to migrate to [but] these tariffs have undermined all of the progress in diversification.”
