United States President Donald Trump presented a “reciprocal and assertive reciprocal rate on Thursday in order to counteract nations that impose high rates on North -American goods. The implications of reciprocal rates, especially in countries where North -American companies make their products, have been a topic of discussion among experts.

Deepak Shenoy, the Capitalmind’s founder and CEO, provided a more prudent and demanding perspective on possible consequences, using Nike as an example.

In an X post, Shenoy said that Nike produces high -end shoes, with half made in Vietnam by means of a subsidiary that significantly reduces production costs compared to retail prices. He emphasized that production in Vietnam is a supplementary aspect, which costs $ 18 to make a shoe sold for $ 115.

“Nike makes expensive shoes. Half is made in Vietnam, in a subsidiary that effectively costs a fraction of what these shoes are selling. This is the business model, brand ownership and marketing, and maintains low manufacturing costs. Most cost of cost: ads, marketing, R&D in its post X.

Shenoy said that 46% rates would mean $ 9 to the current $ 115 price of Nike Air Force 1, which is equivalent to an increase of 8%. This allows Nike the flexibility to increase the price to $ 124.

Yesterday, Shenoy warned that the implementation of reciprocal rates could have a durable negative effect on the global economy. He emphasized the likelihood that the North -Americans would have the impact of these repercussions during an prolonged period as the situation unfolds.

“There is not even the need for retaliation. Let the north -Americans pay for a while and see how it goes out,” Shenoy said in a post on social media on “X”.

Shenoy described the fare strategy as a “very aggressive approach to the United States,” says the turbulence of the potential market in the near future.

“I guess it’s not crazy if all central banks leave the north –

As Nike could affect

Nike actions and clothing companies were reduced on Thursday after President Donald Trump announced new rates to Vietnam and other critical production centers. The United States implemented a 46% reciprocal rate on Vietnam goods on Wednesday, as part of the expanding commercial dispute initiated by President Trump. In addition, new 49% rates have been imposed in Cambodia, 34% in China and 32% in Indonesia.

During the last decade, so much Nike Inc. As Adidas AG they have invested a lot in Vietnam. According to regulatory files, about half of all Nike shoes and 39% of Adidas shoes are manufactured in the country. Vietnam has become the main footwear supplier of these companies, generating more than $ 20 billion in annual income.

Nike experienced a 7.3% decrease in the price of shares during extended negotiation hours at 18:00. Lulullemon Athletica Inc., known for producing 40% of its products in Vietnam and 17% in Cambodia, also saw a significant fall of almost 11% in late negotiation. For its part, Abercrombie & Fitch Co., which causes 35% of its Vietnam merchandise and 22% of Cambodia, quickly recovered after an initial decrease of almost 8%. Gap Inc. It faced a fall of up to 11%, attributable to the fact that about 27% of its goods come from Vietnamese factories and 19% of Indonesia.

According to a New York Post report, the introduction of a new tariff on April 9 could lead to an additional amount of $ 18 to the current $ 180 tag of the Air Jordan 1 sneakers in Nike.

Similarly, other Nike folk slippers can see that prices ranging from $ 15 to $ 35. According to UBS, consumers can expect an increase of 10% to 12% of the prices of the merchandise caused by Vietnam.

For example, a Nike shoe price of $ 115, such as Nike Air Force 1, has a production cost of about $ 18 in a factory abroad. With a 46% rate imposed on Vietnam products, additional $ 8.28 could be incorporated. This increase in accumulated cost is significant when multiplied by the number of slippers that can be sent in a container, which is usually around 8,000 pairs.