Reciprocal Tariff Driving Nike, Adidas and Puma To India

New Delhi, Apr 5 (KNN) U.S. President Donald Trump’s sweeping new tariffs on global imports could accelerate a major production shift to India by global footwear giants such as Nike, Adidas, and Puma, industry experts say.

On Thursday, the U.S. imposed a 26 per cent flat tariff on Indian imports, a move that surprisingly benefits India compared to competitors like Vietnam (46 per cent), Cambodia (49 per cent), and Indonesia (32 per cent). These higher duties on non-leather footwear have made India a more attractive sourcing destination.

Nike, Adidas, and Puma, which currently depend heavily on Vietnamese production, are likely to reassess their supply chains. In FY24, 50 per cent of Nike’s footwear came from Vietnam, as did 39 per cent of Adidas’ products.

With tariffs on some Vietnamese categories now climbing as high as 60 per cent, India’s revised rate of 36 per cent appears more favourable.

Indian manufacturers, especially in Tamil Nadu, are already ramping up. Taiwanese firms like Shoe Town, Pou Chen Corp, and Feng Tay have committed nearly Rs 18,000 crore in investments.

JR One Kothari, a Tamil Nadu-based joint venture, has produced over 2 million Crocs since launching operations last November.

Stocks of major footwear companies took a hit after the tariff announcement—Nike fell 10 per cent, Adidas 11 per cent, and Puma 10 per cent—as analysts warned of a 10–12 per cent price hike for U.S. consumers.

India’s competitive edge is further boosted by its lower labor costs—just USD 0.90 per hour versus USD 3 in China. “The math is simple: with these tariffs, brands need to cut costs or lose customers,” said an industry expert. “India is now better placed than ever.”

Commerce officials are currently evaluating the broader impact, but industry leaders agree: the tariff war may just kickstart India’s rise as a global sneaker hub.

(KNN Bureau)