Retailers and brands have turned to Vietnam to produce goods from sneakers to sofas while moving some or all of the output from China.

Over the years, China’s southern neighbors have become a popular alternative to companies trying to avoid trade tensions with Beijing. Now, as president Donald Trump Extended His tariff targetsthey can never clear it.

Trump said he would be responsible for importing 46% from Vietnam as part of a global wave of taxation announced Wednesday. This could soon increase the costs of major companies in clothing, furniture and toy spaces, some of which may pass on these increases to consumers in the form of price increases. Vietnam’s tariffs will come into effect on April 9.

China exports more goods to the United States than any other country in 20 years, but Mexico Beyond China As the highest source of 2023. China is now The second largest supplier For the United States, the value of goods in 2024 is $438.9 million, according to government data from the Office of the United States Trade Representative.

Vietnam has also become a popular destination for companies that want to diversify countries they rely on production and reduce the risk of trade conflicts with China. Imports from Vietnam grew to $136.6 billion in 2024, up about 19% from 2023, according to the Office of the U.S. Trade Representative.

On the other hand, imports from China increased by only 2.8% from 2023 to 2024, according to government data. Imports from China fell by about 18% compared to 2022, when the United States brought $536.3 billion in goods from the country.

These responsibilities will attack companies when many consumers become Value awareness and selectivity for expenditures Due to ongoing inflation and economic concerns. While it is unclear which companies will raise prices due to tariffs, businesses may be reluctant to bear higher costs as they predict spending in the coming months.

Some household names will feel the emergency of Vietnam’s tariffs. Nike About half of the manufacturers’ footwear in China and Vietnam, about 25% are from Vietnam. A White House official told CNBC that Trump will sign a 34% tariff on the existing 20% ​​tariff on Chinese imports at a 54% rate.

Tariffs will be another headwind for the sneaker and sportswear giant, which has already provided disappointing forecasts for the quarter. Which guide, Double-digit decline in sales forecast Over the course of three months, including the estimated impact of tariffs on imports from China and Mexico.

Expanded tariffs could stagnate or slow down Nike’s efforts to restore brand and improve sales under its new CEO Elliott Hill, a veteran Take charge last fall.

Nike shares fell more than 6% in expansion trading on Wednesday. Adidas Other major footwear athletes also rely heavily on Vietnam.

The two companies did not immediately respond to CNBC’s request for comment.

According to industry trade group U.S. footwear distributors and retailers, nearly one-third of footwear imports in the United States are from Vietnam in 2023, which is the latest full-year data.

Steve MaddenFor example, in an earnings call in early November it would cut imports to the United States from China, for example, Up to 45% In next year. The footwear maker made the announcement just days after President Trump’s victory, after his campaign was expected to impose high tariffs on countries such as China.

However, one country, Steve Madden, along with Cambodia, Mexico and Brazil, accelerated Vietnam, which is Vietnam.

Vietnam is The second largest country For suppliers UGG and Hoka parent company Flooring Brand As of this month. The company has 68 supply chain partners in Vietnam and surpasses supply chain partners in only 125 suppliers in China. Deckers shares fell nearly 9% in expansion trading. The company did not immediately respond to a request for comment.

VF CompanyIt is composed of footwear, clothing and accessories brands including North Face, Timberland, Vans and Jansport, and is also heavily dependent on China and Vietnam. According to the December manufacturing disclosure, about 38% of suppliers are in China and 17% of Vietnam are in Vietnam, with a total exposure of 55%.

The company’s shares fell more than 8% in expansion trading on Wednesday. VF declined to comment, citing the quiet period ahead of the upcoming earnings report.

The furniture industry has also increased its dependence on Vietnam.

According to the Home Furniture Association, 26.5% of U.S. furniture imports come from the country in 2023, lagging behind 29% from China, a trading group that lobbied on behalf of home furnishing retailers. The group cites investment banking firm Mann, Armistead & Epperson, one of the best data sources for the furniture industry.

To sum up, this means that about 56% of U.S. furniture imports come from both regions.

On the February revenue conference call Wayfair CEO Niraj Shah said that the transfer to countries outside China has been a “growth trend” since Trump issued tariffs during his first administration.

He said places like Cambodia, Indonesia, Thailand, the Philippines and Vietnam “grow as people have factories and the source of our goods.”

Wayfair’s stock fell about 12% in expansion trading. Wayfair said in a statement that it is “closely monitoring the evolving trade landscape”. The company added that it “has a good location to continue to provide the best combination of best value, classification and experience to its customers.”

Toymaker also relies on Vietnam to import and sell goods to children and adults across the United States HasbroSpinmaster, Mattel and Crayola are companies that partner with GFT Group, one of the largest toy manufacturers in Southeast Asia.

In addition to the long-established manufacturing facilities in China, GFT currently has five production facilities in northern Vietnam, employing more than 15,000 workers.

On the phone call in early March, Funko Chief Financial Officer Yves Lependeven said the company is known for its big-eyed plastic collection and is working to control the capabilities of the coming year. This includes trying to offset tariffs by “renegotiating plant costs, accelerating the transfer of our production to other procurement countries and implementing pricing adjustments,” he said. ”

During the call, he said about one-third of Funko’s global product purchases come from China. He did not name the country where Funko is transferring production to, but it is a customer of the GFT Group.

Those toy makers did not immediately respond to CNBC’s request for comment.

Curtis McGill is the co-founder of Hey Buddy Hey Pal, a toy company specializing in Easter egg decorating kits. He said he hopes that a 46% increase in tariffs in the U.S. would increase toy costs, but added that the company could negotiate with suppliers in Vietnam to ease the hikes.

“Many manufacturers and actual toy companies are already in conversations with manufacturers that must help in some ways because toy companies are under pressure to try to maintain retailers’ prices,” McGill said.

For companies including apparel manufacturers, the new tariff policy has raised questions about whether and where to move their manufacturing sector. Last month, an investor asked American Eagles Costume About it contacted Vietnam on a recent earnings call.

Chief Financial Officer Michael Mathias said the production of jeans and clothing brands is similar in Vietnam and China, with “high-end to 20%” production in each country. He said the company’s goal is to restore it to half of the year.

The U.S. Hawk fell more than 5% on Wednesday. The company did not immediately respond to CNBC’s request for comment.

However, Mathias and American Eagle CEO Jay Schottenstein said in the company’s final call for earnings that it is crucial to maintain flexibility while awaiting how tariffs will work and which countries are targeting.

Schottenstein mentioned in the first Trump administration eight years ago that the U.S. Hawks were still facing challenges and had to figure out a new plan.

There is another shift, Schottenstein said, but “no one knows what the story is.”

“I won’t be in a hurry,” he said. “You’re in a hurry, where am I going? I don’t know where am I going.”

Peter Baum is the chief financial officer and chief operating officer of Baum Essex, a New York manufacturer licensed to produce products for brands such as Nautica, Betsey Johnson and Steve Madden. In the first Trump administration in 2019, Baum moved the factory from China to the Philippines, Cambodia, Vietnam and India.

He told CNBC on Wednesday that the reciprocity tariffs would cause huge damage to his company.

“That’s how you start global depression. After 80 years and five generations of Trump, Trump has shut us down.”

– CNBC Sarah WhittenJason Gewirtz and Eamon Javers contributed to the report.