‘Nike makes expensive shoes… It makes them in $18…’: Deepak Shenoy weighs on reciprocal tariffs

On Thursday, US President Donald Trump invested spacious and ambitious “mutual” policy, which aims to shoot high tariffs for American goods. The consequences of mutual tariffs, particularly on the countries where American companies produce their products, have become a subject of discussion among experts.

Founder and CEO of Capital, Deflak Sheno provided a more reasonable and discerning prospect on possible consequences, such as using as an example.

Sheno mentioned in X’s post that Nike produces high-quality shoes, half of which are produced by a subsidiary, which significantly reduces production costs. He stressed that production in Vietnam is an additional point of view, where it costs $ 18 for shoe production sold for $ 115.

“Nike is preparing expensive shoes in Vietnam, a subsidiary that is costly worth those shoes. Sheno has marked his x post.

Shenoy noted that the 46% tariffs will lead to the rise of 11 US dollars in the current US $ 115 rise in Nike Air Force 1. This allows Nike to have flexibility to increase the price of $ 124.

Yesterday, Sheno warned that the implementation of mutual tariffs may have a negative impact on the world economy. He stressed the likelihood of Americans who bears the rude extended period of those consequences, as the situation takes place.

“There is no need for angry, honest.

“Shenoy” described the tariff strategy as a “very aggressive approach to the United States”, noting the possible development of the market in the near future.

“I think it’s not crazy if all central banks drop the US dollar and move to the euro bonds or tape.

How can tariffs hit Nike?

President Donald Trump, looking at the shares of Nike and clothing companies on Thursday, stated new tariffs for Vietnam and other important production nodes. On Wednesday, the United States implemented 46% reciprocal tariffs on Vietnam’s products as part of the expansion of the trade dispute initiated by President Trump. In addition, 34% of the new tariffs of 49% of Cambodia, 34%, and 32% of Indonesia.

Over the past decade, and Nike Inc. and Adidas AG were heavily invested in Vietnam. According to the regulatory materials, about half of all the shoes of all the shoes and 39% of Adidas shoes are now produced in the country. Vietnam has become the main supplier of shoes for these companies, bringing annual revenues more than $ 20 billion.

Nike has felt 7.3% decline in the price of shares at 6 o’clock in New York. Lululemon Athletica Inc., which is known in Vietnam, and 17% in Cambodia also took almost 11% in late trade. On the contrary, Abercrombie & Fitch Co. Gap Inc. is up to 11% decline, attributed to the fact that about 27% of its products come from Vietnamese factories and 19% from Indonesia.

According to the New York Post Report, the introduction of a new tariff on April 9 can lead to the current $ 18 of the Nike’s Air Jordan 1 high sports rating.

Similarly, other popular Nike sneakers can see prices rising from $ 15 to $ 35. According to UBS, consumers can expect from 10% to 12% increase in prices of products arising from Vietnam.

For example, Nike Sneaker is $ 115, for example, Nike Air Force 1 has a $ 18 worth of $ 18 in the foreign factory. The 46% tariff for goods imposed on goods from Vietnam will be made for one couple. The increase in this cumulative value becomes significant when multiplied by the number of sneakers that can be shipped in container, which is usually about 8000 pairs.