** Shares in Adidas ADSGn.DE and Puma PUMG.DE fall 9-10% after U.S. tariff announcement
** "Very bad news for the US fashion and sportswear industries, which import 98% and 99% of their products sold in the US, respectively, especially from China and Vietnam," Cedric Rossi at Bryan Garnier says
** Sportswear brands will be disproportionately hit by higher tariffs on Vietnam, Rossi says, given that the country represents about 50% of Nike's NKE.N footwear production, 40% of Adidas' footwear production, and 90% for On Holding ONON.K
** "We would caution that the reciprocal tariffs may not only negatively impact margins by, on average, double digit % across the sector, but also top-line amid rising concerns over inflation, uncertainty, and stock market volatility," Metzler analyst Felix Jonathan Dennl says
** Dennl adds companies in the sector are likely to respond with price hikes in the U.S.
** Adidas and Puma stocks are at the bottom of German blue-chip index .GDAXI and mid-cap index .MDAXI, respectively
(Reporting by Linda Pasquini)
((Linda.pasquini@thomsonreuters.com))
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