Nike, Adidas, and other sportswear brands may face challenges as the US considers tariffs on imports from Vietnam.

The decision, expected Apr. 2, is part of President Donald Trump’s efforts to boost domestic production and address trade imbalances. Vietnam has a US$123.5 billion trade surplus with the US, making it a likely target.

Nike produces 50% of its footwear and 28% of its apparel in Vietnam, while Adidas sources 39% of its footwear and 18% of its apparel there.