Nike, Deckers, On Running among footwear stocks under pressure as Trump outlines latest tariff plans

Footwear stocks, including Deckers (DECK), Nike (NKE), and On Holding (ONON), were under pressure on Friday after the latest details on President Trump’s tariff plans were released late Thursday evening.

Deckers led declines in the space on Friday, with shares falling nearly 3% in late-morning trade. Shares of Nike and On Holding were off more than 1.5%.

The new tariff rates, now formally authorized by executive order, set levels from 10% to 40% for nearly all global trading partners.

Key sourcing regions for apparel companies like Vietnam and Indonesia now face a 20% and 19% tariff, respectively, on goods exported to the US. These new rates will go into effect on Aug. 7.

China remains a wildcard for the industry, as no formal trade deal has been announced. Absent another pause, the current 30% tariff rate on Chinese imports is scheduled to kick in Aug. 12.

Many footwear companies have already moved much of their sourcing away from China to Vietnam in response to the first Trump administration’s trade efforts, but companies are still looking at sizable tariff-related impacts this time around.

“On tariffs, we are still awaiting final details. But based on the recent updates, assuming Vietnam increases from 10% to 20%, we would expect to face a total of $185 million of unmitigated impact to our cost of goods sold in fiscal year 2026, up from our previously provided estimate of up to $150 million,” Deckers CFO Steven Fasching told investors last month.

“As we said last quarter, we put in measures to recapture up to approximately $75 million, and we’ll continue to evaluate additional levers for potential further mitigation,” he added.

Read more: What Trump’s tariffs mean for the economy and your wallet

Nike told investors in late June that tariff costs are expected to approach $1 billion as the company plans to diversify its supply chain away from China, which currently accounts for about 16% of the shoes it imports into the US.

It expects to bring that down to the “high single-digit range” by the end of this fiscal year. The company also announced plans for a “surgical price increase” in the US, which is set to begin this fall.

On Holding (ONON), which is based in Switzerland — now facing a whopping 39% tariff — but sources mainly from Vietnam, is set to report earnings later this month. Telsey Advisory Group’s Cristina Fernández said in a recent client note that On passed through a $10 price increase “on many styles in early July in response to tariffs” and did not notice any negative impact during a recent store visit.