US Tariff Shift Sparks Onshoring Trend Among Global Companies

The US government's shift in tariffs on Vietnam has significant implications for companies that source goods from the country. Nike, Deckers Outdoor, and Electra Battery Materials are among those potentially benefiting from this change.

Nike is a global sportswear giant with a market cap of around $60.4 billion. It designs and sells footwear, apparel, and equipment under various brands worldwide. The company's revenue comes mainly from the Nike brand, with significant contributions from North America, Europe, the Middle East, Africa, Greater China, and Latin America.

Nike is realigning its production across countries due to higher costs and leaning on its scale to mitigate these effects. However, this process may be masking a more significant story about the company's future prospects.

Deckers Outdoor, another footwear and apparel company, has a market cap of around $12.7 billion. It is known for its UGG boots and HOKA running shoes, among other brands. The company faces tariff pressure on Vietnamese footwear but may be able to offset this with brand pricing power, direct-to-consumer sales, and share buybacks.