Why Nike is a cautionary tale when it comes to tariffs
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What did Kamala Harris say in her first speech after leaving the White House?
Good morning. It's Thursday, May 1st. I'm Yasmeen Khan in for Shamita Basu. This is Apple News Today. On today's show, Kamala Harris delivered her first big speech since the election. How Donald Trump's spending bill is testing Republican unity. And the Supreme Court seems poised to upend the separation of church and state. But first, U.S.
How are Trump's tariffs affecting the U.S. economy?
economic growth dropped dramatically for the first time in three years amid President Trump's aggressive global tariff strategy. The GDP declined by 0.3 percent this past quarter, and if it were to decline again the next quarter, we will officially be in a recession. Consumer confidence has also plummeted to its lowest level since the recession of 1990. It dropped 32 percent since January. and hiring in April slowed to its lowest pace in nine months. Despite the bleak numbers, Trump defended his tariff policy at a rally in Michigan on Tuesday, where he marked his first 100 days in office.
You're going to be very proud of this country very soon. And with my China tariffs, we're ending the greatest job theft in the history of the world. China's taken more jobs from us than any country has ever taken.
Trump has repeatedly said that the goal of his tariffs is to move manufacturing back to the United States. But for many American companies, it won't be easy. The Wall Street Journal recently looked at Nike, which for years, even before Trump took office, has tried to move part of its manufacturing out of Asia into North America and automate more of the process.
What challenges is Nike facing with its manufacturing strategy?
But it's hit some major roadblocks along the way.
Producing a shoe is actually a lot more difficult than you might imagine.
That's Wall Street Journal reporter John Emond, who's based in Asia.
Why is producing shoes a complex process for Nike?
So there's a reason why it's always done in a very labor-intensive way. And that's because the fabrics that make up a shoe, their dimensions change based on the temperature, based on the humidity. And so if you're, say, the person who's in charge of gluing the sole of the shoe onto the upper part of the shoe... You can easily adjust if, say, you realize that this sole is a little smaller than the last sole. You'll still know where to put the glue. But a machine is going to really struggle if the dimensions of the shoe are a little different.
Emont cites one example in his story, where it took robots in a Nike factory in Mexico around eight months to learn how to place the iconic Nike swoosh on a shoe using minimal human labor.
And then by the time they got it and they were feeling, I think, you know, rather proud of this fact, Nike had already moved on to a new shoe where that method no longer worked.
So now, Emont reports, Nike may be facing some tough choices. Make much simpler shoes that are easier to mass produce, or reconsider the efforts to automate manufacturing and move more of its production to the U.S. There are some clear upsides. Producing shoes in the U.S. would mean products spend less time in transit and get into stores sooner. But a former executive who worked with Nike told Emont, in order for Nike to pull it off, the company will need to, quote, have deep pockets and some patience because it's not going to happen fast. Now to California, where last night, former Vice President Kamala Harris gave her first major speech since leaving the White House and losing the 2024 election.
She spoke critically about Trump's first 100 days in office and how he's expanded executive power.
I know tonight's event happens to coincide with the 100 days after the inauguration. And I'll leave it to others to give a full accounting of what has happened so far. But I will say this. Instead of an administration working to advance America's highest ideals, we are witnessing the wholesale abandonment of those ideals.
Harris also criticized Trump's economic policy.
So look, some people are describing what's been happening in recent months as absolute chaos. And of course I understand why. And it's certainly true of those tariffs. Tariffs that, as I predicted, are clearly inviting a recession.
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Chapters
6 chapters
1
What did Kamala Harris say in her first speech after leaving the White House?
0:05–0:35
2
How are Trump's tariffs affecting the U.S. economy?
0:35–1:50
3
What challenges is Nike facing with its manufacturing strategy?
1:50–2:01
4
Why is producing shoes a complex process for Nike?
2:01–6:47
5
What are the implications of tariffs on California's economy?
6:47–9:55
6
What did Tyler Pager reveal about Kamala Harris's potential political future?
9:55–14:29
Speakers
6 identifiedMore from Apple News Today
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