Demand for athletic shoes and equipment is apparently skyrocketing as the NCAA Championship final is set to captivate millions of sports fans in the US and above.
The March Madness game is a huge marketing opportunity for clothing giants like Nike and Adidas, whose products dominate the wood courts, as well as a display of college basketball skills.
However, these brands benefit from greater awareness in the context of the scene, and their supply chains are in danger of experiencing a crisis. The important manufacturing hub for these businesses, Vietnam, is the subject of President Donald Trump’s 46 % tax increase.
Vietnam’s rising clothing sector is now facing an existential threat that may destroy both the sector and US consumers. As the main producer of high-performance basketball shoes and apparel, Vietnam’s rising footwear sector is now the main producer of high-performance basketball shoes and apparel.
Vietnam has benefited significantly from shifting supply chains, especially as businesses have fled China to evade US tariffs that have previously been applied. Over half of Nike’s shoes generation and a sizable portion of Adidas ‘ manufacturing are currently done in Vietnam.
Trump’s extreme tariff policy implies that these well-known sportswear manufacturers will significantly raise their costs, making them both to pass price increases on to consumers or to look for alternative production locations, both of which would cause significant disruptions.
Higher tariffs was stifle investment in Vietnam’s factories, which could ultimately stifle demand, leading to layoffs and lowering economic growth in a country that has recently emerged as one of the US’s main financial partners.
The tariffs could undermine a crucial component of the global supply chain at a time when need is exploding because apparel companies are so deeply embedded in Vietnam’s business.
Additionally, Trump’s punishing tax threatens to pressure ties between the two countries at a crucial time, just as they commemorate 50 years since Saigon’s fall on April 30.
The US and Vietnam have developed a relationship that is now proper complete partners, centered on financial co-operation, regional security, and shared safety concerns in the Indo-Pacific, especially with regard to China in the South China Sea.
Trump’s incredibly high tariff runs the risk of stifling supply chains, stifling confidence, and causing Vietnam to look for other financial alliances, potentially undermining US influence in the region at a time when political security is important.
According to Morningstar analyst David Swartz, the White House’s draconian position is based on the US’s$ 123.5 billion trade deficit with Vietnam, which is the third-largest country in the world after only China and Mexico.
Vietnamese officials have attempted to reach a deal before the burdensome tariff levy goes into effect on April 9 in response.
Vietnam offered to eliminate all US import tariffs and requested that the US not impose any additional tariffs or fees on Vietnamese goods in a letter sent on April 5 from Vietnamese Communist Party chief to Trump, according to Bloomberg.
Additionally, he requested a 45-day restraint from the implementation of the tariffs. Hanoi has made diplomatic concessions, and his pledges also include assisting in the repatriation of Vietnamese nationals who have been held in the US.
In the end, multinational corporations that employ hundreds of thousands of workers in Vietnam will primarily be responsible for the 46 % tariffs that are intended for the country. These costs, however, will eventually be passed down the supply chain, causing the American consumer to suffer as a result.
When the new Vietnam-specific tariffs go into effect, for example, the price of a pair of Nike shoes, like the Nike Air Force 1, is expected to increase from an average of$ 115 to over$ 150.
Although the majority of economists concur that tariffs are a tax on businesses, in reality companies typically make up for these costs by raising prices, lowering profit margins, or moving production elsewhere.
The tariff impact for Vietnam will go beyond multinational corporations, and it will also have an impact on the nation’s workforce, who depends on manufacturing jobs from foreigners to provide for its people’s needs.
For instance, Nike has over 130 000 Vietnamese employees working for it in 75 contracted factories that produce Nike-branded goods nationwide. Nike claimed in its 2024 financial year report that it produced 50 % of its footwear and 28 % of its clothing in Vietnam.
Women, who make up 80 % of the workforce in Nike’s factories, have a significant employment opportunity thanks to Nike’s extensive manufacturing presence in Vietnam.
Many of these women are looking for better pay and financial stability and are from rural poor in the central and northern provinces. Many families have been benefited from their Nike-linked jobs as they have ascended to a global economy.
Indeed, for many of these workers, working in one of Nike’s factories is their first exposure to the formal economy, giving them access to steady incomes, legal protections, and opportunities for skill development that can lead to broader career opportunities.
Beyond providing financial benefits, Nike’s involvement in the promotion of gender equality and economic empowerment has also been significant. Many of these women serve as role models for younger generations in their communities, inspiring them to pursue careers and education.
Trump’s” Liberation Day” tariffs also result in higher prices for US consumers for a range of everyday items, especially in those whose heavily depend on Vietnamese exports, such as shoes, electronics, and textiles.
Former Undersecretary of Commerce for International Trade Frank Lavin has publicly criticized Trump’s “scattershot” tariffs strategy for causing conflicting outcomes, hurting the US economy, and causing volatility.
He observes other countries and businesses looking for opportunities elsewhere as the US loses its credibility as a trading partner.
Trump’s tariffs on key trading partners, including Vietnam, come at a time when the world economy was and is still highly interconnected.
In a world defined by globalization, these protectionist measures not only stymie complex supply chains but also put strain on diplomatic, economic, and possibly security relations.
A more fragmented and rebalanced global order, a “rewired” world where cooperative frameworks are increasingly undermined, is the focus of Trump’s action. That new world will have detrimental effects on a wide range of stakeholders, both in developed and developing economies.
After the NCAA finals, basketball fans will likely see higher prices and fewer options for athletic clothing after the new champion is announced.
What appears to be Trump’s economic “liberation” could have the opposite effect, harming US consumers and endangering long-held ties with a Vietnami trade partner.
James Borton is the author of Dispatches from the South China Sea: Navigating to Common Ground and a senior fellow at Johns Hopkins/SAIS Foreign Policy Institute.