Peter Schiff Says Nike 'Won't Build Factories' In US, They Will Sell To Countries Like China: A Much Better Strategy Amid Trump Tariffs

Economist Peter Schiff warned on Thursday that Nike Inc. NKE won’t shift production to the United States despite newly imposed tariffs, predicting higher prices and reduced domestic sales for the footwear giant . What Happened : “Nike won’t build factories in the U.

S. to make sneakers. That would add more cost than the 40% tariffs,” Schiff wrote on X.



“The result will be fewer sneakers sold in the U.S. at much higher prices.

” When questioned whether Nike might absorb tariff costs while building domestic factories, Schiff dismissed the idea, suggesting the company would instead redirect products: “They will eventually sell more sneakers to consumers in other countries instead, as they buy what Americans can no longer afford.” The comments come as Nike shares plummeted 14.44% on Thursday after President Donald Trump announced sweeping reciprocal tariffs affecting the company’s supply chain.

Vietnam, where Nike produces nearly 50% of its footwear , faces a 46% tariff increase. Nike won't build factories in the U.S.

to make sneakers. That would add more cost than the 40% tariffs. Plus, they need to stay competitive selling to customers in other countries that don't impose tariffs.

The result will be fewer sneakers sold in the U.S. at much higher prices.

Why, they will still sell sneakers at higher prices in the U.S. The sneakers they don't sell in the U.

S. they will sell to consumers in other countries instead, like China. That's a much better strategy.

See Also: Friday’s Jobs Report Could Be Make-Or-Break Moment After Trump’s Tariff Shock Why It Matters : Goldman Sachs identified Nike among several retailers with high exposure to the new tariffs , which include a 34% rate for China and 32% for Indonesia, both key manufacturing locations for the company. The broader market experienced significant turmoil following the tariff announcement, with Wall Street losing approximately $2 trillion in market value . Consumer discretionary stocks were particularly hard hit , with Nike’s competitors also suffering substantial losses— Lululemon Athletica Inc.

LULU fell 9.28%, and Adidas shares declined on its 39% Vietnamese manufacturing exposure. Analysts warn that brands will need to adjust pricing, negotiate with vendors, and optimize costs to protect margins.

Wedbush Securities analyst Dan Ives called the tariffs “worse than the worst case scenario,” with particular concern about the China and Taiwan tariffs’ impact on supply chains and demand . Nike lags behind Lululemon, Columbia Sportswear COLM , Under Armour UAA , Skechers SKX , VF Corp VFC , and On Holding AG ONON , struggling with negative growth and momentum. Benzinga Edge Stock Ranking also indicates a bearish price trend for Nike across short- and long-term periods.

Sign up to learn more . Read Next: Commerce Secretary Lutnick Says US Markets Will Perform ‘Extremely Well’ Long Term Despite Trump Tariff Selloff Image via Shutterstock Disclaimer : This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock – anytime.

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