Nike (NKE) stock tumbled 5.02% in pre-market trading on Friday, as investors reacted to President Donald Trump's announcement of a new reciprocal tariff policy that could significantly impact the footwear and sportswear industry. The policy, which includes a 34% tariff on goods from China, a major manufacturing hub for Nike, has sent shockwaves through the retail sector.

The new tariffs, set to take effect in stages starting April 5, have raised concerns about potential margin pressures and price increases for companies heavily reliant on overseas production. Nike, along with other major players in the footwear industry, is expected to face challenges in managing costs and maintaining profitability in the face of these new trade barriers.

The impact of the tariffs extends beyond Nike, with other footwear makers also experiencing pre-market declines. Crocs fell 2.8%, Skechers USA dropped 3.9%, and Deckers Outdoor slipped 4.1%. This sector-wide downturn reflects investor anxiety about the broader implications of the tariff policy on the industry's supply chains and cost structures.

As companies and investors grapple with this new economic landscape, analysts are closely monitoring the situation. Bernstein has already adjusted its price target for Nike, lowering it from $95 to $85, while maintaining an outperform rating. This move suggests that while the long-term outlook for Nike remains positive, the near-term headwinds from the tariff policy are expected to impact the company's performance.