Source: Trump Promises Business Leaders Major Border Tax, Rule Cuts – Bloomberg
Matthew Kish and Matt Townsend have been tweeting all day about how the Trump administration’s decision to remove the US from the TPP will affect the Footwear and Apparel market. Kish reported,
“TPP would have resulted in $1.1 billion increase in U.S. footwear imports, per U.S. International Trade Commission.”
This morning presidents of various companies sat down to listen to Trump. Kevin Plank was one of those execs and he heard firsthand that his company could be destroyed. Now, those were not the exact words, but the idea that those companies that import products will face stiff tax increases automatically affects every footwear company. The problem for Under Armour is that they are working on 8% margins and those margins don’t have any room for disruption considering the amount UA will have to spend to keep up with their growth into other countries and even here at home.
The sneaker world is about to be shook to its core and that’s not hyperbole.
As the announcement of Trump’s decision Under Armour fell 2.09% on the market in Class A $UAA stock.