Nike (NYSE:NKE) is facing fresh pressure after the U.S. government imposed steep new tariffs on imports from Vietnam, a key production hub for the brand. The Trump administration's move, announced April 2, adds duties of up to 46% on Vietnamese goods and 49% on Cambodian imports a major hit for companies heavily reliant on Southeast Asia.

Vietnam produces roughly half of Nike's footwear and nearly a third of its apparel. With the new policy in place, importing a $100 pair of sneakers could carry an additional $46 in tariff costs. Nike now faces a tough decision: absorb the costs and hurt margins or raise prices and risk losing market share in an already competitive environment.

The company's stock tumbled 11% to 13% after the news, hitting levels not seen since late 2017. Analysts reacted quickly, flagging Nike's exposure to Vietnam as a significant vulnerability, particularly as the brand struggles with post-pandemic growth challenges.

Shifting production away from China to Vietnam once seemed like a smart move. Now, that strategy is backfiring. Reconfiguring supply chains isn't simple moving operations to regions like Latin America or Africa takes time and capital. In the meantime, pricing adjustments and lobbying efforts are Nike's most likely responses.

Other global brands are also feeling the pressure since Liberation Day. Adidas (ADDYY), which sources 40% of its shoes from Vietnam, saw its shares fall by 11%. Skechers (NYSE:SKX) dropped 13.5%, while On Holding (NYSE:ONON) slid 7.2%. Lululemon (NASDAQ:LULU), Puma (PUMSY), and Under Armour (NYSE:UA) also declined, though stronger brand loyalty may help soften the blow for some premium players.