Sport, one of the world’s great industries and, like practically all of them, is closely linked to international trade and global economic flows, has been greatly affected by the tariffs on imports to the United States imposed in the last few hours by President Donald Trump. Manufacturers of clothing and equipment such as Adidas, Puma and Nike have suffered sharp declines in their stock market value. As is well known, these companies, the first two European and the third American, carry out much of their production in Asia, in countries that have been heavily penalized by the president’s protectionist policy. Nike carries out around 50% of its production in Asia and Adidas 40%.
In recent hours, the stock market value of Adidas on the Frankfurt Stock Exchange has fallen by10.3%, Puma by 10.6% and Nike by10% on the New York Stock Exchange. Imports from Cambodia have been taxed at 49%, Vietnam at 46%, Thailand at 36%, China at 34%, and Indonesia and Taiwan at 32%. Some of the production that was being done in China was even being moved to Vietnam.
Video from a cruise ship shows massive 40 foot waves smashing into the ship
The impression in economic circles is that Trump’s protectionist policy has two objectives: one, to get money so that the state can offer a tax cut. Another is to get the United States to attract industrial production. However, the most immediate foreseeable consequence is high inflation in the United States, since there is no possibility of relocating production chains except in the very long term due to the complexity of production and logistics chains. This is in case companies decide to accept this option.
These consequences are not the only implications for the sports industry as it is one of the most globalised and one in which many elements of ‘primary’ production converge, from food to technology. It remains to be seen what the long-term impact will be.
This news was originally published on this post .
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