Stocks tied to sports take a hit on Thursday after U.S. tariff announcement

Stock prices for sports-related companies heavily impacted Thursday as a result of recent U.S. tariff announcements. President Donald Trump declared new global tariffs, causing a widespread downturn, with the S&P 500 plummeting by 5 percent.

By the end of the trading day on Thursday, various sports and apparel brands witnessed substantial drops in stock prices ranging from just under 10 percent for Lululemon to almost 20 percent for Under Armour. Notable declines include Under Armour at 18.25%, Skechers at 17.1%, On at 16.2%, Nike at 14.4%, American Sports at 13.4%, Dick’s Sporting Goods at 12.5%, Puma at 11.8%, Adidas at 11.7%, and Lululemon at 9.6%.

The newly introduced tariffs involve a minimum 10 percent tariff on all U.S. imports with additional levies on numerous trading partners. According to a recent report from Sportico, while companies like Nike have been reducing their dependence on China for manufacturing, they have shifted operations to other Asian nations such as Vietnam, which now face increased import taxes.

Vietnam could face a substantial 46 percent tariff, especially impacting companies like Nike and Adidas that rely on Vietnam for their global production processes. Nike, in its May 2024 filing with the United States Securities and Exchange Commission, stated that around half of its footwear was made in Vietnam last year. Factories in Indonesia and China produced an additional 27 percent and 18 percent of Nike’s footwear, respectively. Each of these countries will experience tariffs exceeding 30 percent. Moreover, Vietnam, China, and Cambodia jointly contributed 58 percent of all Nike apparel in the 2024 fiscal year. Any imports from Cambodia could face an additional 49 percent tariff if these new measures are implemented.

As companies might pass on increased costs due to tariffs to consumers, buyers may respond by purchasing fewer items or paying higher prices for goods. The economic impact extends beyond the international market to consumers, who could face ripple effects from these tariffs.

As fans gear up for the Final Four weekend in men’s and women’s college basketball, the logos on player uniforms—featuring brands like Under Armour for South Carolina’s women, Nike for Duke, Florida, and Houston on the men’s side, and UCLA, UConn, and Texas for the women’s teams—will serve as stark reminders of the economic realities that could affect both teams and fans beyond the basketball court.

The tariff announcements have revealed significant vulnerabilities in the sports industry’s global supply chain, raising concerns about future financial performance for sports-related companies that depend on international production and trade. The market reactions underscore the interconnectedness of global economics and sports, highlighting the impact of political decisions on stock prices and consumer behavior within the sports industry.