Impact of Tariffs on Retail Industry and Nike
The retail industry reacts to the news of reduced tariffs on Vietnamese imports, with mixed feelings among executives. While the 20% tariff is seen as an improvement from the initially proposed 46%, concerns remain about its impact on consumer spending. Companies like Nike are preparing to raise prices to offset the tariff effects.
The retail industry is breathing a sigh of relief after it appeared to avoid the worst case scenario on Vietnam tariffs. Some executives believe the tentative trade deal President Donald Trump announced is still bad for business and could affect consumer spending.
Trump announced that tariffs on Vietnamese imports would be 20%, down from the 46% levy he proposed earlier. The new rate would be double the current 10% duty in place.
Retail executives in the apparel and footwear industries had been worried about facing high tariffs on Vietnam imports. Many retailers had shifted production to Vietnam to avoid high tariffs and geopolitical issues in China.
Vietnam is now a major supplier for footwear, apparel, and accessories in the U.S. market. The proposed 46% tariff would have affected the industry's efforts to move away from China.
Most companies are planning to offset the impact of tariffs by sharing costs with suppliers or raising prices. However, the impact on consumer spending remains uncertain.
Executives are concerned that any tariff hike will increase prices for consumers and affect business negatively.
According to the source: CNBC.
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