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Nike’s 30-year gamble on Vietnam rattled by Trump tariffs

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By Kim Bhasin | Bloomberg

The backbone of Nike Inc.’s supply chain is being hammered by President Donald Trump’s global tariff campaign, straining a decades-long investment just as the world’s largest sneaker company tries to rebound under a new chief executive officer.

Over the past 30 years, Nike has funneled billions of dollars of production into Vietnam, helping turn the southeast Asian nation into a powerhouse for footwear and apparel production. On Wednesday, Trump imposed a 46% tariff on goods from Vietnam — among the steepest of the countries he targeted — that threatens to devastate its manufacturing industries.

Nike has become a symbol of corporate fallout from Trump’s tariff blitz: a famed US brand entangled in an economic calamity that’s wiped trillions from stocks and pushed global supply chains into disarray. Executives have been left with a costly conundrum across Asia, where nearly all Nike sneakers are made.

The timing couldn’t be worse. New CEO Elliott Hill, a longtime Nike executive who came out of retirement in October, is attempting to revive a company weighed down by slumping sales and corporate layoffs. Nike expects further declines in revenue and profitability, and shares have fallen 30% so far this year.

Hill must now navigate rising costs across his supply chain, with the possibility of passing price hikes on to consumers. In March, he told investors that he visited factory partners in Asia “to see how we’re executing,” but has yet to outline a plan to manage tariff fallout. A representative for Nike didn’t immediately respond to a request for comment.

Management’s options are limited, and analysts say it’s impossible for Nike to quickly reorient its supply chain. Vietnam, China and Indonesia — all hard-hit by Trump tariffs — account for 95% of Nike footwear production. The total workforce that manufactures Nike products in those three countries is roughly 850,000 — slightly larger than Apple Inc. supplier Foxconn, according to company disclosures. TD Cowen analyst John Kernan said there’s simply nowhere else with the comparable capacity or labor costs to absorb that volume.

All eyes, then, are on Vietnam — Nike’s most important production base.

A man walks past a Nike store in Hanoi, Vietnam, Thursday, April 3, 2025. (AP Photo/Aniruddha Ghosal)
A man walks past a Nike store in Hanoi, Vietnam, Thursday, April 3, 2025. (AP Photo/Aniruddha Ghosal)

Betting on Vietnam

Nike entered Vietnam in 1995 with five contract footwear factories, part of a long-term bet by cofounder Phil Knight. It was a gamble because the industry was still developing and its workforce lacked experience and oversight, but Knight saw opportunity.

“I always vowed that someday Nike would have a factory in or near Saigon,” which is now known as Ho Chi Minh City, Knight said in his memoir.

Nike’s presence was immediately scrutinized. After a labor scandal erupted, Knight flew to Vietnam to confront the crisis. In 1998, he pledged to root out child labor from Nike’s supply chain in a speech in Washington DC.

Since then, Nike’s footprint in Vietnam has only increased, adding more factories as the industry gained infrastructure and manufacturing experience. Rivals like Adidas AG and Puma SE followed, as did newer brands such as Lululemon Athletica Inc., Skechers USA Inc. and Allbirds Inc. Half of all Nike brand sneakers are made in Vietnam now, according to filings.

Vietnam’s footwear and apparel industries were big winners during Trump’s first term. Geopolitical tensions pushed Western brands out of China and they flocked to Vietnam, with its established manufacturing history and infrastructure. Vietnam now ranks among the world’s top exporters of both apparel and footwear, according to the World Bank.

Vietnam’s government has lauded Nike’s investments as vital to their economy’s growth. The nation has been among Asia’s fastest-growing economies in recent years, with gross domestic product up 7.1% last year, surpassing both government projections and estimates from analysts.

That mutual dependence has led to a close relationship between Nike and Vietnam’s government. Officials in Hanoi have hosted Nike executives, including a chief operating officer, in recent years. In 2022, Prime Minister Pham Minh Chinh asked the company for policy recommendations to deepen Vietnam’s integration into global supply chains.

Limited options

These days, Nike works with over 100 apparel factories, footwear plants and equipment makers in Vietnam, the company has disclosed. Most are clustered around Ho Chi Minh City, where major contractors each employ over 10,000 workers.

At Nike headquarters in Beaverton, Oregon, executives are trying to figure out how to best spread the new costs among those who can share the pain, according to a person familiar with the matter who asked not to be named discussing private conversations. The brand, the factory that produces the goods, the wholesalers that sell the goods and the consumer would all likely share portions of the cost, the person said.

Nike could pressure vendors to take on more of the new costs, streamline operations or coordinate with retail partners to raise prices, said Anna Andreeva, an analyst at Piper Sandler. But she warned there’s a ceiling.

“That’s the number one question: How much price increase can the consumer realistically absorb?” Andreeva said.

Executives at Foot Locker, Nike’s biggest retail partner, said last week that they’re in “constant communications” with brands on pricing strategy as they mull how much of these tariff costs will end up being placed on US shoppers.

“We’re going to work through brand by brand,” Foot Locker Chief Executive Officer Mary Dillon said at a JPMorgan event last week. “It’s a combination of ‘What do they take? What does the consumer take?’”

Meanwhile, Vietnam’s government has been working to placate Trump. On Saturday, Vietnam’s leader To Lam asked Trump to delay his tariffs for at least 45 days to allow for negotiations. He offered to cut tariffs on US goods to zero and encouraged Trump to do the same.

Trump said the call was “very productive.” But White House adviser Peter Navarro said Vietnam’s offer wasn’t enough. Vietnam upped the offer on Tuesday, promising to buy more US defense and security products.

US Treasury Secretary Scott Bessent says Vietnam is visiting the US capital on Wednesday to discuss trade.

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Shai Gilgeous-Alexander, Thunder top Timberwolves for 2-0 lead

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By CLIFF BRUNT AP Sports Writer

OKLAHOMA CITY — Shai Gilgeous-Alexander scored 38 points a day after being named the NBA’s MVP, and the Oklahoma City Thunder overwhelmed the Minnesota Timberwolves again, winning 118-103 on Thursday night to take a 2-0 lead in the Western Conference finals.

Gilgeous-Alexander shot 12 for 21 from the field and 13 for 15 from the free-throw line after receiving his MVP trophy from Commissioner Adam Silver before the game.

“I feel like all my emotions were so high, but I was a little bit tired out there, especially at the start,” Gilgeous-Alexander said. “I was a little too juiced up. Special moment. I’m happy we won so I can really enjoy the last couple days and soak it up. That really helps.”

Jalen Williams had 26 points and 10 rebounds and Chet Holmgren added 22 points for the Thunder.

Oklahoma City’s Lu Dort was named first-team all defense and Williams was named second-team all-defense earlier in the day. They helped anchor a unit that held Minnesota to 41.4% shooting.

“When you win games, you do it together and you have fun out there, everything else – all the individual stuff you want – it comes with it,” Gilgeous-Alexander said.

Anthony Edwards scored 32 points for Minnesota, but it took him 26 shots to get them. Jaden McDaniels scored 22 points and Nickeil Alexander-Walker added 17 for the Timberwolves.

Game 3 is Saturday in Minneapolis.

Gilgeous-Alexander hit a 3-pointer with 16 seconds left in the first half, then made a pair of free throws with three seconds remaining to help Oklahoma City take a 58-50 lead. He scored 19 points before the break.

“We didn’t close the half very well,” Minnesota coach Chris Finch said. “I thought if we close the half better then we don’t put ourselves on such a razor edge in the third.”

In the third quarter, Gilgeous-Alexander drove to the paint and threw up a wild shot that went in as he was fouled by his cousin, Alexander-Walker. Gilgeous-Alexander made the free throw to give the Thunder a 73-64 lead.

A lob by Cason Wallace to Holmgren for a two-handed jam on a fast break put Oklahoma City ahead 82-65 late in the third quarter. The Thunder took a 93-71 advantage into the fourth.

Minnesota closed to within 10 in the final period, but Oklahoma City kept the Timberwolves at bay late. Now, Minnesota gets to go home, where it is 4-1 in the playoffs.

Finch remained optimistic.

“Every minute in a series is a chance to find something,” he said. “So we’re going to go back home. This is a good team at home. So we’re going to go home and fight for Game 3. Heads up, look at the tape and get ready for Game 3.”

NBA commissioner Adam Silver, left, presents the league MVP trophy to Oklahoma City Thunder guard Shai Gilgeous-Alexander prior to Game 2 of the Western Conference finals against the Minnesota Timberwolves on Thursday night in Oklahoma City. (AP Photo/Nate Billings)
NBA commissioner Adam Silver, left, presents the league MVP trophy to Oklahoma City Thunder guard Shai Gilgeous-Alexander prior to Game 2 of the Western Conference finals against the Minnesota Timberwolves on Thursday night in Oklahoma City. (AP Photo/Nate Billings)
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Montebello baseball comes up short against Heritage Christian in quarterfinals

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MONTEBELLO – The deeper a team goes in the playoffs, the tougher it gets. The Montebello baseball team has found that out the last three seasons.

The Oilers have amassed 61 wins during that span, but each time they have bowed out of the CIF Southern Section playoffs in the quarterfinals.

Montebello had flawless pitching and defense over the first two rounds of the postseason, but three errors helped contribute to a 7-3 loss to Heritage Christian in the Division 6 quarterfinals Thursday.

The Oilers (20-10) briefly threatened in the bottom of the seventh by scoring two runs, but left the bases loaded.

Heritage Christian (20-8-1) advances to Tuesday’s semifinals. It will face the winner of Friday’s game between Marshall and Santa Fe.

“You know, they are fighters year in and year out and this is the third year in a row going to the quarterfinals,” Montebello coach Manny Arana said. “We’ve had success and they’re all winners and we instill in them to be a winner.  You have to be a fighter.

“You could see that in the last inning with a ball that could have gone five feet either way and put the tying run on base. After that, anything can happen. That’s baseball.”

Leading the way for the Oilers were senior center fielder Isaiah Cervantes, who had two singles, and freshman shortstop Nathan Govea, who had two singles and scored a run. Senior catcher Roberto Barraza had a double and an RBI.

Heritage Christian senior shortstop Eden Nalin led the way for team with three hits and an RBI, while three other players had two hits apiece.

The Warriors (22-8-1) opened the scoring with two runs in the first inning. One run came across on the first of three errors by the Oilers.

Two innings later, Montebello cut the lead in half with a run in the third inning.

Starting pitcher Fernando Cruz singled up the middle with two outs and came home on a double to left by Barraza.

The Oilers left two runners on base in the inning and also left runners on second and third in the second inning.

“From day one in the playoffs we’ve told them you have to throw strikes, play defense and get a clutch hit,” Arana said. “The first two games we did that and (Thursday) we had a couple of opportunities early and missed and that hurt us.”

Cruz opened the playoffs with a one-hitter. On Thursday Cruz scattered six his through five innings with five strikeouts.

“It’s been a good ride with my teammates, and we’ve been playing together for almost two or three years,” Cruz said. “I’ve shared the field with these seniors since before high school.”

The sixth inning turned out to be the downfall for Montebello, as the Warriors scored three runs.

With two outs, an infield pop fly was dropped for the third error of the game. That loaded the bases and the next two Warriors batters combined to knock in the three runs and increase their lead to 5-1.

Two more runs came across the next inning for a 7-1 advantage.

“In the seventh inning, we were down 7-1, but our team almost managed to get a comeback,” Cruz added. “We had the tying run at the plate, but just couldn’t get it done.”

Cruz was referring to the two-run rally and how they left the bases loaded to end the game.

Govea opened the inning with a single to left. Senior left fielder Devin Lopez was hit by the pitch and Cervantes loaded the bases with a single to right center.

An RBI walk to junior second baseman Michael Rios brought in the second run and a sacrifice fly by Cruz sent Lopez in to score. A fly ball to right ended the game and season for the Oilers.

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Tenants sue Pasadena, LA County for better living standards after Eaton fire

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Two tenant unions and several residents have each filed lawsuits against the city of Pasadena and the county of Los Angeles, frustrated in what they allege are agencies that have failed to meet their legal responsibilities to inspect and enforce safe and habitable living standards for renters following the Eaton fire.

Neighborhood Legal Services of L.A. County, a nonprofit legal advocacy group, announced on Thursday morning that, in conjunction with the legal firm Morrison Foerster LLP, it had filed lawsuits on behalf of the Altadena Tenants Union, Pasadena Tenants Union, along with four named wildfire survivors.

“The message that we’re sending with these lawsuits is simple,” said Whitney O’Byrne, a partner with Morrison Foerster and a board member of NLSLA. “When a government agency fails to protect the health and safety of its residents, especially the most vulnerable, it must be held accountable.”

The lawsuits aim to force government agencies to take legally required actions to thoroughly inspect rental residences for hazardous toxins and see that appropriate remediation methods are used by landlords to make them safe and livable.

“A primary issue presenting was that landlords were not remediating units contaminated with toxic smoke, soot and ash,” said Lena Silver, director of policy and administrative advocacy at NLSLA.

Silver said the city and county governments are responsible for conducting the inspections that are the first step in the process, but they have not met that responsibility.

“The County of Los Angeles Department of Public Health, responsible for enforcing and inspecting habitability rights for tenants in unincorporated Altadena, and the City of Pasadena Code Compliance Division, responsible for doing the same in Pasadena, both maintain that smoke, soot and ash inspection do not fall within their purview,” she said.

“Pasadena continues to state that smoke and ash remediation is a purely civil issue,” Silver said. “While Los Angeles has informed us that it has performed a handful of inspections, the type of inspection they’re providing cannot adequately identify the health risks of the impact of toxic smoke, soot and ash.”

L.A. County Public Health did not comment on the claims, and Pasadena’s spokesperson said the city has not been served with the lawsuit and couldn’t respond.

Conditions have put tenants between a rock and a hard place, Silver explained. Because some landlords are refusing to pay for the professional, certified remediation necessary to address toxins imbedded in places like walls and insulation, renters are having to make a choice.

Some have moved back in to unclean units and have begun experiencing health issues, Silver said, because they can’t afford to move elsewhere. Others are still living in temporary quarters, or in their cars, or paying two rents at once in order to keep their Altadena and Pasadena places, because they’re ultimately more affordable.

“We’ve also heard stories of tenants paying out of pocket at extremely high cost for testing just to confirm the toxic levels of lead and other contaminants that we know are present,” Silver said.

Brenda Lyon, a tenant in Pasadena, asked her landlord to file a homeowner’s claim in order to bring in a qualified remediation team, but they refused. Instead, she and her husband paid out of pocket for the work, expecting reimbursement from the landlord.

“I called every politician’s office, every city office,” Lyon said. “I was advised to file a code compliance, so I did, (but) the code compliance was denied, stating my problem was a civil issue.

“A habitable premise, per the state of California, is a right of a tenant,” she said, “so why would no one in the city make that happen for me?”

When she and her husband again approached the landlord about filing a homeowner’s claim so the couple could be reimbursed, they were told No and that, if they didn’t like it, they could move.

“We need our city to have our back, so that we can all move back in safely,” Lyon said.

Katie Clark, a founder of Altadena Tenant Union, who lost her rental home of 15 years to the Eaton fire, said she speaks with people every day that are still displaced, are living in unclean facilities, have been hit with illegal rent hikes, or are a step away from being homeless because their money is dwindling as they cover the cost of temporary housing.

“Throughout all of this, Los Angeles County has been virtually silent when it comes to the plight of tenants,” she said.

Many, Clark said, are people of modest means who rely on rent-controlled apartments to get by.

“The county has consistently passed the buck and shrugged off its responsibilities, telling tenants, ‘You’re on your own,’” she said.

“We’ve been told there’s nothing the County can do,” she said. “We know that’s not true … Just because we don’t own property doesn’t mean we’re not part of this community.”

Silver and the legal teams from both groups intend to make both Pasadena and L.A. County meet their obligations.

“The County and City must immediately provide adequate inspections of rental units with smoke, soot and ash damage caused by the Eaton fire and do it in a manner that actually ensures the health and safety of tenants,” Silver said. “They must cite property owners for any damage and they must require property owners to remediate that damage promptly and thoroughly to eliminate any health risks.”

Jarret Liotta is a Los Angeles-based freelance writer and photographer.

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