Proposed U.S. tariffs on Vietnamese imports could significantly impact Nike (NKE, Financial), which sources about 50% of its footwear and nearly a third of its apparel from Vietnam, according to Reuters. If implemented, the tariffs may force the company to absorb higher production costs or raise prices — both of which could strain profitability amid softening sales.

Adidas (ADDYY, Financial), which manufactures 39% of its footwear and 18% of its apparel in Vietnam, also faces potential margin compression. The new trade policy is part of a broader effort by the White House to escalate tariffs beyond China, with Vietnam next in line as the U.S.'s fifth-largest supplier of goods.

Smaller competitors like Puma (PMMAF, Financial) and On Holding (ONON, Financial) are also exposed. Puma has already seen its stock decline by 23% this year following weaker financial projections, and the prospect of added import costs could increase pressure. On, meanwhile, may see its rapid growth constrained before achieving broader scale.

Vietnam has responded by easing tariffs on U.S. goods and permitting SpaceX's Starlink service in a bid to stabilize relations. Still, with 30% of its GDP tied to exports to the U.S., the nation remains economically vulnerable.

Retailers are warning of potential price increases for American consumers. As the April 2 enforcement date nears, companies may need to quickly evaluate sourcing strategies and pricing models.

It's important to note that Nike's stock has underperformed significantly across all timeframes. Over the past month, it plunged 18.47% and is down 30.03% over the past year. In contrast, the S&P 500 posted a 7.42% gain in the same 1-year period. Year-to-date, Nike has declined 14.42%, sharply lagging the broader market.