Tariff Shifts Reshape Sourcing Strategies for Companies Like Nike

US tariffs on Vietnam have shifted quietly, and this change is already affecting where companies source products. Higher duties and tougher compliance can squeeze import-heavy business models, while producers closer to home may see fresh interest.

Nike (NKE) is a global sportswear giant that designs and sells footwear, apparel, and equipment under brands such as Nike, Jordan, and Converse across various regions. Most revenue comes from the Nike brand, led by North America at about $20.5 billion, followed by Europe, Middle East, and Africa at about $12.6 billion.

However, Nike's market cap stands at roughly $60.4 billion. The company is already reallocating production across countries and using its scale to blunt higher costs while still leaning on a wide brand moat, high recent return on invested capital (ROIC), and an A2 credit rating.