Gap, Nike and Levi’s took years to diversify from China. Now sky high tariffs on nations like Vietnam are ruining plans and tanking their stocks

At the Shoptalk retail conference, Gap Inc CEO Richard Dickson emphasized the company’s minimal reliance on China, with less than 10% of products sourced from there, as they diversify suppliers to countries like Vietnam, India, and Indonesia. However, following the Trump Administration’s announcement of punitive tariffs on imports from these countries, including a 46% levy on Vietnam, both Gap and Levi’s saw significant stock declines, raising concerns about the challenges of quickly shifting production. Retailers like Target and Nike also faced drops in their shares, highlighting investor worries about the limited options for alternative manufacturing locations amid ongoing tariff conflicts.