Major U.S shoe retailers request Trump to remove additional tariff from Chinese footwear
Over 170 shoe retailers including major ones like Nike (NKE), Under Armour (UAA), Adidas, Foot Locker (FL), Ugg, and Off Broadway Shoe Warehouse have sent a letter requesting President Donald Trump to consider removing the additional tariff on footwear imported from China.
The request follows the release of a fresh list of about $300 billion in Chinese goods on which 25% tariff would be added if Trump decides to prolong the U.S.-China trade dispute. The list includes every aspect of footwear-from sneakers to sandals, golf shoes, rain boots, and ski shoes.
The Footwear Distributors and Retailers of America (FDRA) has estimated a loss of more than $7 billion each year for the shoe industry if the tariffs are imposed and continued.
According to FDRA, a popular type of canvas “skate” sneaker, currently retailing for $49.99, with a 25% tariff, could increase to $65.57. The price of a typical hunting boot would increase from $190 to $248.56. And a popular performance running shoe could jump from $150 to $206.25.
Currently, U.S tariffs on all consumer goods average just 1.9% and footwear accounts for 11.3%. But these rates may reach as high as 67.5% if an additional 25% tax is imposed on top of these existing tariffs. This will also mean some working American families could pay a nearly 100% duty on their shoes which is simply outrageous.
Last year, the U.S. imported $11.4 billion worth of footwear from China. The U.S. is heavily reliant on the country for its skilled yet cheap labor. Right now, retailers like Nike, Adidas and Under Armour have decided to shift production base from China to places like Vietnam. However, the letter also underscored that footwear is a capital intensive industry and simply removing production base is not the solution.
The letter is yet to receive a response from the other end.
NKE's RSI Indicator climbs out of oversold territory
The RSI Indicator for NKE moved out of oversold territory on October 06, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 41 similar instances when the indicator left oversold territory. In 26 of the 41 cases the stock moved higher. This puts the odds of a move higher at 63%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on NKE as a result. In 52 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 57%.
The Moving Average Convergence Divergence (MACD) for NKE just turned positive on October 08, 2026. Looking at past instances where NKE's MACD turned positive, the stock continued to rise in 22 of 43 cases over the following month. The odds of a continued upward trend are 51%.
Following a +2.19% 3-day Advance, the price is estimated to grow further. Considering data from situations where NKE advanced for three days, in 149 of 272 cases, the price rose further within the following month. The odds of a continued upward trend are 55%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NKE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 72%.
NKE broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for NKE entered a downward trend on October 13, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 6 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.631) is normal, around the industry mean (2.689). P/E Ratio (17.329) is within average values for comparable stocks, (36.101). Projected Growth (PEG Ratio) (1.427) is also within normal values, averaging (0.949). NKE has a moderately high Dividend Yield (0.045) as compared to the industry average of (0.022). P/S Ratio (1.142) is also within normal values, averaging (1.252).
The Tickeron SMR rating for this company is 44 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating fairly steady price growth. NKE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 89 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NKE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
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General Information
a maker of athletic footwear and apparel
Industry WholesaleDistributors
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