The chart for Nike (NKE) shows that the share price has dropped to around $55 – levels last seen in November 2017.

Since the start of 2025, the stock has declined by approximately 27%.

Why Has Nike’s Share Price Dropped?

As noted in our analysis from September 2024, Nike shares had been trending downward for several months due to intense competition. However, President Trump’s tariffs have become the dominant bearish factor.

This is largely because Nike relies heavily on manufacturing operations in Asia – many of which have been directly affected by the newly imposed tariffs.

What’s Next?

According to the Wall Street Journal, manufacturers are taking a wait-and-see approach. They’re reluctant to shift production out of Asia, which could mean higher prices for American consumers. A full return to U.S. production is unlikely due to:

→ a shortage of skilled workers and suppliers;
→ significantly higher wages in the U.S. compared to Asia;
→ relocating production from Asia is a complex business migration, not just a factory move – a process many companies might not be prepared for.

Some firms are reducing their margins or optimising logistics, but most are hoping to weather the storm or delay major changes.

Technical Analysis of Nike (NKE) Shares

The price is forming a downward channel (highlighted in red), with the following characteristics:
→ the median line provided temporary support, but the early April rebound attempt was very weak;
→ the lower boundary of the channel now appears to be acting as support.

The RSI indicator suggests strong oversold conditions. Bulls might take comfort in the proximity of the psychological $50 mark strengthening this support level. However, it seems that only positive developments on the tariff front are likely to reverse sentiment meaningfully.

According to WSJ analysts, Trump’s recent comments hint at possible negotiations. But unless the President changes his stance, Mexico, Brazil, and India – nations well-placed to act as intermediaries between China and the U.S. – could emerge as the main beneficiaries.

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