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Nike ( NKE ) shares are tumbling 13% in intraday trading Thursday after President Donald Trump imposed steep reciprocal tariffs on Vietnam and other Asian countries where the sneaker giant makes most of its products.

The U.S. imposed a 46% tariff on Vietnamese goods, 32% on Indonesia, and 49% on Cambodia. President Trump also announced 34% levies on imports from China in addition to previously imposed 20% tariffs on goods from Asia's largest economy.

According to its fiscal 2024 annual report, factories in Vietnam, Indonesia, and China manufactured approximately 50%, 27%, and 18% of its footwear, respectively, while factories in Vietnam, China, and Cambodia made 28%, 16%, and 15% of apparel.

"Potential incremental Vietnam tariffs appear under-appreciated by investors, & could prove a notable headwind given significant sourcing exposure across our coverage," Morgan Stanley analyst Alex Straton recently wrote, noting that apart from Nike, sneaker companies Allbirds ( BIRD ), Skechers ( SKX ) and On Holding ( ONON ) are "potentially most exposed" from levies imposed on the Southeast Asian country.

Shares of On Holding, Skechers, and Allbirds are tumbling 15%, 22%, and 13%, respectively.

UPDATE—April 3, 2025: This article has been updated to include refreshed share prices.

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