Patrick Johnson 
Today we get news courtesy of Portland Business Journal‘s Matthew Kish that Nike Inc. has joined over 100 other American companies to form the Americans for Affordable Products group in an effort to fight against the Trump Administration’s planned import tax. The business collective plans on a national advertising campaign in order to argue their stance that a tax would increase consumer prices on such staples as food and gas.
Like many sportswear companies, Nike outsources their manufacturing to countries like China, Thailand, Vietnam, and more where cheap labor means an affordable price point (and larger overall profits) for products once they return to the states for sale. Supporters of the border adjustment tax argue that this would protect American jobs and lead to companies like Nike deciding to return their manufacturing plants to the United States, an act that would simply never happen according to Phil Knight in Michael Moore’s 1998 documentary The Big One.
But according to Kish’s report, the Americans for Affordable Products is convinced the updated border adjustment tax could hurt working middle-class families with essential goods increasing up to 20 percent in price. So what’s really going on here? While Nike and adidas have made strong statements in the aftermath of Trump’s poorly planned Muslim ban (you can read Mark Parker’s statement here and the adidas statement here) both brands are readying for stronger opposition as the Trump Administration digs its feet in.
Above all else, a border tax will cost multi-national companies like Nike and adidas absurd amounts, and regardless of President Trump’s war on political correctness, his insanely controversial Muslim ban, and the brashness of the current Republican regime’s policies, brands like Nike and adidas would have opposed Trump outright regardless. He’s bad for their business and unless The Donald is getting a piece of their profits, don’t expect that to change anytime soon.
Source: Portland Business Journal
