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Nike’s Vietnam Manufacturing Shift Puts It in Trump’s Tariff Crosshairs

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Nike’s Vietnam Manufacturing Shift Puts It in Trump’s Tariff Crosshairs

For the past two decades, Nike has worked to gradually diversify its manufacturing beyond China, with Vietnam emerging as the company’s most important market for production. On Wednesday afternoon, President Donald Trump announced reciprocal tariffs that will impact Vietnamese-made goods more than those from almost any other country.

The impact of those import tariffs will be far-reaching across the global economy—shortly after the announcement an S&P 500 ETF fell 2%. They will particularly impact the companies that import the bulk of their goods from the countries with the highest rates. On Trump’s list, Vietnam had the fourth highest rate at 46%, trailing only Cambodia (49%), Laos (48%) and Madagascar (47%).

In fiscal 2024, factories in Vietnam manufactured 50% of all Nike Brand footwear, by far its largest market. Factories in Vietnam also manufactured 28% of all Nike Brand apparel, also its largest market.

The second most important manufacturing market for Nike is likely China. The country accounts for 16% of Nike apparel manufacturing, second only to Vietnam, and 18% of footwear, third behind Vietnam and Indonesia. Trump’s new tariffs include a 34% rate on China-made goods, but White House officials told CNBC that the those tariffs would come on top of the 20% already imposed on Chinese imports. That implies a true tariffs rate of 54%. 

Nike stock (NYSE: NKE) fell 7% in after-market trading.

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Representatives for Nike didn’t immediately respond to an email seeking comment. Tariffs only came up once on the company’s latest earnings call on March 20, with CFO Matthew Friend mentioning specifically that the company’s latest guidance included newly implemented tariffs on imports from Mexico and China. Those tariffs are separate from the ones announced this week.

Throughout the 1990s Nike was frequently criticized for the labor conditions of its overseas factories, particularly those in China. Since then, the company has worked to diversify its supply chain. It’s not alone—U.S. companies of all sorts have spread out their manufacturing in that span, some searching for lower prices, others looking to insulate themselves from potential volatility and geopolitical relations between the U.S. and Chinese governments.

Vietnam quickly emerged as Nike’s most important market for manufacturing. In 2001, for example, Vietnam accounted for just 13% of the company’s footwear goods and was not included in a list of 12 countries that accounted for most of Nike’s apparel manufacturing, according to SEC filings. A decade later, in 2011, Vietnamese factories were making 39% of Nike’s footwear, its biggest market, and appeared to be third for apparel. It became the company’s most important country for apparel manufacturing for the first time in 2020  and has remained at the top in both categories ever since.

The Nike filings only list where the goods are made, and not where they are sold. That’s likely more relevant in China—many companies are more intentional about selling China-manufactured goods in China—than it is in Vietnam, which has a population that is about 1/14th of its northern neighbor.

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Indonesian factories accounted for 27% of Nike footwear in 2024, according to the filing, which put it in front of China and behind Vietnam. Trump’s announcement included a 32% tariff on Indonesian goods. The third most important country for manufacturing Nike clothing was Cambodia, at 15% of the company’s apparel. The Cambodian tariff rate of 49% was the highest of any rate announced Wednesday.

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Bulgaria votes in eighth election in five years

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Bulgaria votes in eighth election in five years

Bulgarians headed to the polls Sunday for the eighth time in five years, with anti-corruption candidate and former president Rumen Radev’s bloc tipped to win.

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The European Union’s poorest member has been through a spate of governments since 2021, when large anti-graft rallies brought an end to the conservative government of long-time leader Boyko Borissov.

Eurostat data shows Bulgaria consistently ranks last in the EU by GDP per capita. In 2025, Bulgaria (along with Greece) was at 68% of the EU average.

Radev, who has advocated for renewing ties with Russia and opposes military aid to Ukraine, was president for nine years in the Balkan nation of 6.5 million people.

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He stepped down in January to lead newly formed centre-left grouping Progressive Bulgaria, with opinion polls before Sunday’s vote suggesting the bloc could gain 35% of the vote.

The former air force general has said he wants to rid the country of its “oligarchic governance model”, and backed anti-corruption protests in late 2025 that brought down the latest conservative-backed government.

“I’m voting for change,” Decho Kostadinov, 57, told reporters after casting his ballot at a polling station in the capital, Sofia, adding corrupt politicians “should leave — they should take whatever they’ve stolen and get out of Bulgaria”.

Polls are forecasting a surge in voter participation, with more than 3.3 million Bulgarians expected to cast ballots according to the Bulgarian News Agency.

Voting will close at 1700 GMT, with exit polls expected immediately afterwards. Preliminary results are expected on Monday.

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‘Preserve what we have’

Borissov’s pro-European GERB party is likely to come second, according to opinion polls, with around 20%, ahead of the liberal PP-DB.

“I’m voting to preserve what we have. We are a democratic country, we live well,” said Elena, an accountant of about 60, who did not give her full name, after casting her vote in Sofia.

Front-runner Radev has slammed the EU’s green energy policy, which he considers naive “in a world without rules”.

He also opposes any Bulgarian efforts to send arms to help Ukraine fight back Russia’s 2022 invasion, though he has said he would not use his country’s veto to block Brussels’ decisions.

Pushing for renewed ties with Russia, Radev denounced a 10-year defence agreement between Bulgaria and Ukraine signed last month – drawing fresh accusations from opponents of being too soft on Moscow.

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The ex-president also stoked outrage online for screening images at his final campaign rally of his meetings with world leaders including Russia’s Vladimir Putin.

“We need to close ranks,” he told around 10,000 cheering supporters at the rally, presenting his party as a non-corrupt “alternative to the perverse cartel of old-style parties”.

Borissov, who headed the country virtually uninterrupted for close to a decade, has dismissed suggestions that Radev brings something “new”.

At a rally of his party earlier this week, he insisted GERB had “fulfilled the dreams of the 1990s” with such achievements as the country joining the eurozone this year.

‘No one to vote for’

Radev is aiming for an absolute majority in the 240-seat parliament.

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A lack of trust in politics has affected voter turnout, which slumped to 39% in the last election in 2024.

But with Radev rallying voters, high turnout is expected this time, according to analyst Boryana Dimitrova from the Alpha Research polling institute.

Miglena Boyadjieva, a taxi driver of about 55, said she always votes, but the “problem is that there is no one to vote for”.

“You vote for one person and get others. The system has to change,” she told reporters.

Political parties have called on Bulgarians to show up for the polls, also to curb the impact of vote buying.

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In recent weeks, police have seized more than one million euros in raids against vote buying in stepped-up operations.

They have also detained hundreds of people, including local councillors and mayors.

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How Cheap Drones Are Changing Wars Like the Ones in Ukraine and Iran

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How Cheap Drones Are Changing Wars Like the Ones in Ukraine and Iran

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A 3-D rendering of an Iranian Shahed-136 drone, a device with two triangle-shaped wings attached to a central fuselage. It has an engine the size of a small motorcycle’s and carries 110 pounds of explosives.

Engine the size of a small motorcycle’s

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Carries 110 pounds of explosives

One of the biggest takeaways of the war with Iran is that it has proven itself to be a surprisingly capable adversary against the United States. In addition to its willingness to go on the offensive, Iran has forced the U.S. and its regional allies to confront the rise of cheap drones on the battlefield.

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Iranian drones, made with commercial-grade technology, cost roughly $35,000 to produce. That is a fraction of the cost of the high-tech military interceptors sometimes used to shoot them down.

Note: Estimated price of munitions per unit. In practice, multiple interceptors are fired when targeting a drone. For instance, with the $80 bullet fired by the Centurion Counter-Rocket, Artillery, and Mortar (C-RAM), 75 rounds are fired in a second. Sources: Department of Defense, Lockheed Martin, Northrop Grumman, Open Source Munitions Portal, SRC Inc, U.S. Army and U.S. Navy.

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Cheap drones changed the war in Ukraine, and they have enabled Iranians to exploit a gap in American defense investments, which have historically prioritized accurate but expensive solutions.

Countering drones has been a major priority for the Pentagon for years, according to Michael C. Horowitz, who was a Pentagon official in the Biden administration. “But there has not been the impetus to scale a solution,” he said.

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In just the first six days, the U.S. spent $11.3 billion on the war with Iran. The White House and Pentagon have not provided updated estimates, but the American Enterprise Institute, a conservative-leaning think tank, estimated in early April that the U.S. had spent approximately between $25 and $35 billion on the war, with interceptors driving much of the cost. Many missile defense experts also fear interceptor stockpiles are now running dangerously low.

Here is a breakdown of some of the ways the U.S. and its allies have countered Iran’s drones, and why it can be so costly.

Air-based strikes

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In an ideal scenario, an early warning aircraft spots a drone when it is still several hundred miles out from a target, and a fighter jet, like an F-16, is dispatched from a military base. The F-16 can then use Advanced Precision Kill Weapon System (APKWS) II rockets to shoot a drone from about six miles away.

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A 3-D rendering of an F-16 fighter jet firing an APKWS II rocket from under one wing. Two to three rockets are fired per drone, as per air defense protocol. Two APKWS II rockets and an hour of F-16 flight cost approximately $65,000, a little less than twice that of the Iranian Shahed-136.

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Two to three interceptors fired per drone

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Source: U.S. Navy, Department of Defense

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These types of defensive air patrols are cost-efficient, but haven’t always been available because of the vast scope of the conflict. Iran has also targeted early warning aircraft that the U.S. needs to detect a drone from that distance, according to NBC News.

The other option for detecting and shooting down drones is a variety of different ground-based detection systems, but these systems are all at a disadvantage, as their ability to spot low-flying drones is limited by the curvature of the earth.

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Anti-drone defense systems

One ground-based defense system the U.S. and its allies have built specifically to counter drones at a shorter range is the Coyote. It can intercept drones up to around nine miles away.

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A 3-D rendering of a Coyote Block 2 interceptor, which looks like a three-foot tube with small rockets at one end. Two Coyotes cost approximately $253,000 or about seven times that of the Iranian Shahed-136.

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The Coyote is significantly cheaper than many of the other ground-based defense systems available to the U.S. and its allies and historically effective at defending important assets. But despite being both effective and cost-efficient, relatively few Coyotes have been procured by the U.S. military in recent years.

When Iran-backed militias launched attacks on U.S. ground troops in the region in 2023 and 2024, there were so few Coyotes available that troops had to shuffle the systems between eight different bases in the region almost daily, according to a report from the Center for a New American Security, a Washington think tank.

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Ship-based anti-missile defenses

Many of the longer-range ground-based defense systems the U.S. and its allies can use to combat drones are more expensive, as they are designed to shoot down aircraft and ballistic missiles, not drones. A Navy destroyer’s built-in radar system, for instance, can detect drones from 30 miles away and shoot it down with Standard Missile 2 (SM-2) interceptors. As in the air-based strikes, military protocol stipulates that at least two missiles be fired.

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A 3-D rendering of the deck of a Navy destroyer firing an SM-2 missile from a built-in launcher, which looks like a 15-foot missile launching from a grid of openings on the ship’s surface. Two SM-2 missiles cost approximately $4.2 million, about 120 times that of the Iranian Shahed-136.

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This misalignment between America’s defense systems and current warfighting tactics started after the Cold War, when the anticipated threats were fewer, faster, higher-end projectiles, not mass drone raids.

Iran often launches multiple Shahed-136 drones at a time, given their low price tag. The drones are also programmed with a destination before launch and can travel roughly 1,500 miles, putting targets all across the Middle East within reach.

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“This category of lower-cost precision strike just didn’t exist at the time that most American air defenses were developed,” said Mr. Horowitz.

Ground-based anti-missile defenses

The Army’s standard air-defense system is the Patriot. Typically stationed at a military base, it can shoot down a drone from up to around 27 miles away with PAC-3 Missile Segment Enhancement interceptors. Military protocol stipulates that at least two missiles be fired.

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A 3-D rendering of a Patriot launcher loaded with 17-foot PAC-3 MSE missiles, which looks like a tilted shipping container with scaffolding. Two PAC-3 MSE missiles cost approximately $8 million, about 220 times that of the Iranian Shahed-136.

Patriot missile defense system

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Air defense training teaches service members to prioritize using longer-range defense systems first to “get as many bites at the apple as you can,” but those are the most expensive, said Stacie Pettyjohn, a senior fellow and director of the defense program at the Center for a New American Security.

But a costly defense can still make economic sense to protect a valuable target, especially those that are difficult to repair or replace, such as the nearly $1.1 billion radar at a military base in Qatar and the $500 million air defense sensor at a base in Jordan that were damaged early in the conflict.

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Ground-based guns

Finally, there is what one might call a last resort: a ground-based gun. When a drone is about a mile away or less than a minute from hitting its target, something like the Centurion C-RAM can begin rapidly firing to take down the drone.

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A 3-D rendering of a Centurion C-RAM, which looks like a gun mounted to a rotating, cylindrical stand. The gun fires 75 rounds of ammunition per second. Five seconds of firing the gun costs $30,000, slightly less than a single Iranian Shahed-136.

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Centurion Counter-Rocket, Artillery and Mortar

Fires 375 rounds of ammunition in 5 seconds

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Even though it is fairly cost-effective, the Centurion C-RAM is not the best option because it has such a short range.

Interceptor drones

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There’s also what one might call the future of fighting drones: A.I.-powered interceptor drones. Interceptor drones like the Merops Surveyor can theoretically hunt and take down enemy projectiles from a short range.

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A 3-D rendering of a Surveyor drone, which looks like a three-foot tube with wings and a tail. The Merops drone costs approximately $30,000, a little less than a single Iranian Shahed-136.

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Merops system: Surveyor drone

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Eric Schmidt, the former Google chief executive, founded a company to develop the Merops counter-drone system in conjunction with Ukrainian fighters, who have already been combatting Iranian drones in the war with Russia for years.

The U.S. sent thousands of Merops units to the Middle East after the conflict began, but it is unclear whether they have been deployed. The military set up training on the system in the middle of the war, as reported by Business Insider.

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Other attempts to lower the cost-per-shot ratio of taking out a drone have failed.

The Pentagon invested over a billion dollars in fiscal year 2024 researching directed energy weapons, or lasers, that would cost only $3 per shot and have a range of 12 miles. Those systems have yet to be used in the field.

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Despite the cost imbalance, the real fear for many in the defense community is the depleted stockpile of munitions.

“What scares me is that we will run out of these things,” said Tom Karako, the director of the Missile Defense Project at the Center for Strategic and International Studies in Washington. “Not that we can’t afford them, but that we’ll run out before we can replace them.”

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Moscow-born gunman dead after Kyiv shooting rampage leaves at least 6 dead, 14 wounded: Zelenskyy

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Moscow-born gunman dead after Kyiv shooting rampage leaves at least 6 dead, 14 wounded: Zelenskyy

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A Russian gunman was killed by special forces Saturday in Ukraine after opening fire at a supermarket in Kyiv, killing six people and wounding 14 others — including a 12‑year‑old boy.

The 58-year-old shooter long resided in the Donetsk region and was born in Moscow, according to Ukrainian President Volodymyr Zelenskyy and Interior Minister Ihor Klymenko.

He took at least four hostages, killed one of them, and fatally shot four others on the street, Zelenskyy said. Another woman died at a hospital from her injuries.

Graphic video captured by witnesses showed the gunman shooting at a victim within close range on the street. Other bodies were seen lying on the pavement and in courtyards.

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The gunman was seen walking with a weapon on the street. (Obtained by Will Stewart)

MANHUNT UNDERWAY AFTER GUNMEN STORM CHICK-FIL-A LEAVING 1 DEAD

Ukranian special forces stormed the convenience store after 40 minutes of failed negotiations, according to Klymenko.

At least fourteen people were wounded in the attack, though officials cautioned the number may rise as people continue to seek medical assistance.

Among the injured is a 12‑year‑old boy and a supermarket security guard, according to Kyiv Mayor Vitali Klitschko.

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The gunman was pictured dead in the convenience store. (Obtained by Will Stewart)

NINE DEAD, 13 WOUNDED IN SECOND TURKISH MASS SHOOTING IN TWO DAYS

Zelenskyy said the shooter also set fire to an apartment prior to the attack, though it is unclear if any injuries resulted from the arson.

“My condolences to the families and loved ones of the victims,” Zelenskyy wrote in an X post. “…We wish all the wounded a swift recovery.”

The gunman had previously been prosecuted for criminal offenses, but held a valid weapons permit, according to authorities. Investigators from the National Police and the Security Service of Ukraine are investigating.

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The gunman was seen holding and shooting a weapon in the street. (Obtained by Will Stewart)

GUNMAN OPENS FIRE AT HIGH SCHOOL IN TURKEY, WOUNDING AT LEAST 16

Ukraine’s security service labeled the attack an act of terrorism.

“All available information about him and the motives behind his actions is being thoroughly investigated,” Zelenskyy said. “Every detail must be verified.”

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One of the shooter’s neighbors, Hanna Kulyk, 75, described him as an “educated, refined man,” who lived alone and did not socialize often.

“You’d never guess he was some kind of criminal,” Kulyk told The Associated Press.

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