Peter Schiff Says Nike 'Won't Build Factories' In US, They Will Sell To Countries Like China: A Much Better Strategy Amid Trump Tariffs

Kaustubh Bagalkote

Sat, Apr 5, 2025, 11:00 AM 3 min read

Economist Peter Schiff warned on Thursday that Nike Inc. (NYSE:NKE) won’t shift production to the United States despite newly imposed tariffs, predicting higher prices and reduced domestic sales for the footwear giant.

What Happened: “Nike won’t build factories in the U.S. to make sneakers. That would add more cost than the 40% tariffs,” Schiff wrote on X. “The result will be fewer sneakers sold in the U.S. at much higher prices.”

When questioned whether Nike might absorb tariff costs while building domestic factories, Schiff dismissed the idea, suggesting the company would instead redirect products: “They will eventually sell more sneakers to consumers in other countries instead, as they buy what Americans can no longer afford.”

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The comments come as Nike shares plummeted 14.44% on Thursday after President Donald Trump announced sweeping reciprocal tariffs affecting the company’s supply chain. Vietnam, where Nike produces nearly 50% of its footwear, faces a 46% tariff increase.

Nike’s revenue worldwide in million U.S. dollars from the fiscal years of 2017 to 2024, by region— Source: Statista

See Also: How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.

Why It Matters: Goldman Sachs identified Nike among several retailers with high exposure to the new tariffs, which include a 34% rate for China and 32% for Indonesia, both key manufacturing locations for the company.