Peter Schiff Says Nike 'Won't Build Factories' In US, They Will Sell To Countries Like China: A Much Better Strategy Amid Trump Tariffs
Benzinga (Thu, 03-Apr 10:13 PM)
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.”
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.
