The statements recently made on immigration and foreign trade by the new U.S. president, Donald Trump, have created an uproar in many sectors of the U.S. economy, including the sporting goods, outdoor and fashion industries.
Reacting to Trump's executive order banning refugees and visitors from seven countries where the Muslim religion prevails for 90 days - Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen - Mike Parker, president of Nike, said in a letter to the group's employees that it was threatening the company's belief in “a world where everyone celebrates the power of diversity,” which “makes us stronger as a whole” regardless of “whether or how you worship.”
“Nike stands together against bigotry and any form of discrimination,” Parker stated. He said he would support Sir Mo Farah, a sponsored athlete born in Somalia and based in the U.K. who may be hit by the ban, and other members of Nike's staff and its team of endorsers.
One day later, Adidas said in a statement reaffirming its commitment to the U.S. market that sport “can bring people together from all over the world – regardless of their nationality, gender, age, religion or sexual orientation.” The group's management said in an internal e-mail that it was offering support to any employees who might be affected by the executive order.
In a letter to Trump, Tim Boyle, the chief executive of Columbia Sportswear, indicated that the proposed ban on Muslims could be regarded as judging people based on their religious beliefs. Noting that his family had fled Nazi Germany and was able to settle in the U.S. because it was “open and tolerant enough to let us in,” he said that Columbia was committed to tolerance, diversity and fairness – and management across cultures.
Bob Ferguson, attorney general for the state of Washington, where several sports companies are based, said it was planning to file a lawsuit against Trump's order. Jeff Bezos, CEO of Amazon, said he was prepared to support the lawsuit, adding that his company was reaching out to Democratic and Republican congressional leaders “to explore legislative options.”
Meanwhile, analysts noted that Nike and other firms could be damaged by the trade restrictions being discussed in Washington because of the numerous foreign contract manufacturers that they use, particularly in Asia.
Nike, Wal-Mart and more than 100 companies have come out against a Republican proposal to impose a border adjustment tax that would prevent them from deducting payments to foreign suppliers from their taxes.
Observers noted that they will not be helped by President Trump's decision to withdraw the U.S. from the Trans-Pacific Partnership, which would have facilitated imports from Vietnam and other Asian countries.
Earlier, President Trump's plans in favor of more manufacturing in the U.S. had drawn praise by the management of New Balance and Wolverine Worldwide because of the facilities they operate in the U.S. Kevin Plank, the CEO of Under Armour, supported his policies indirectly as one of the 12 CEOs who met with Trump in the White House just after his inauguration.
Marking his support, Plank released its first U.S.-made line of women's leggings and bras made in the U.S. through the company's Lighthouse project, which is meant to develop news advanced manufacturing techniques for both shoes and clothing that can be made locally. Adidas and Nike are already investing in this sector.
