Trump tariffs on Vietnam could raise prices for shoes, furniture, toys

Retailers and brands have turned to Vietnam to manufacture goods from sneakers to couches while moving some or all production out of China.

For years, China’s southern neighbor became a popular alternative for companies trying to avoid the crossfire of U.S. trade tensions with Beijing. Now, as President Donald Trump expands his tariff targets, they can no longer steer clear.

Trump said he will put a 46% duty on imports from Vietnam as part of a new wave of global levies announced Wednesday. That could soon raise costs for major corporations in the apparel, furniture and toy space, and some of them may pass those increases to consumers in the form of price hikes. The tariffs on Vietnam take effect on April 9.

China exported more goods to the U.S. than any other country for more than two decades, but Mexico surpassed China as the top source in 2023. China is now the second largest supplier to the U.S., accounting for $438.9 billion worth of goods in 2024, according to government data from the Office of the U.S. Trade Representative.

For companies that have looked to diversify the countries they rely on for production and reduce risks from trade conflicts with China, Vietnam has also become a popular place to go. 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 rose only 2.8% from 2023 to 2024, according to government data. Imports from China dropped about 18% last year when compared to 2022, when the U.S. brought in $536.3 billion in goods from the country.

The duties will hit companies at a time when many consumers have become value-conscious and selective about spending due to persistent inflation and concerns about the economy. While it is unclear now which companies will raise prices due to the tariffs, businesses may be reluctant to shoulder the higher costs as they forecast lackluster spending in the months ahead.

Some household names will feel the pinch from Vietnam tariffs. Nike manufacturers about half of its footwear in China and Vietnam, with about 25% coming from Vietnam. Trump will put a 34% tariff on top of existing 20% duties on imports from China, for an apparent rate of 54%, a White House official told CNBC.

The tariffs would be yet another headwind for the sneaker and athletic apparel giant, which already delivered a disappointing forecast for the current quarter. That guidance, which projects a double-digit percentage sales decline in the three-month period, included the estimated impact from tariffs on imports from China and Mexico.

Expanded tariffs…