Under Armour faces dramatic stock drop after tariff announcements
- Under Armour's shares dropped over 18%, impacted by President Trump's recent tariff announcements.
- The tariffs include a 10% tax on all imports and higher rates for countries with unfair trade practices.
- The decline in stock raises concerns about the company's future and trading climate in Maryland.
In the United States, Under Armour, a Baltimore-based sports apparel company, experienced a significant stock decline on April 4, 2025, following the announcement of President Donald Trump's new tariffication policies aimed at about 60 countries. The stock fell more than 18% to $5.36 at the close of markets that Thursday, bringing forth concerns about how these changes could affect businesses reliant on imports. The tariffs included a universal 10% tax on all imported goods, effective from April 5, and additional reciprocal tariffs, which could go up to 49% for nations viewed as imposing unfair trade barriers. These new measures have raised alarm among various companies, including Under Armour, leading to potential repercussions in consumer pricing and market stability. In February 2025, prior to these announcements, Under Armour stated that anticipated tariff impacts would not significantly affect its operations. However, after the recent developments, the company expressed intentions to reevaluate the situation based on the evolving policies and their potential impacts. The Vice President of investor relations communicated that the company was closely observing the dynamics of tariff policies to assess necessary strategic actions moving forward. The tariff changes reflect a broader trade strategy of the Trump administration, intended to rectify perceived trade imbalances with other countries. Economic experts warn that while the administration argues these tariffs facilitate fair trading practices, they might lead to increased inflation and disrupt industries reliant on imports. For Maryland's economy, particularly concerning the Port of Baltimore, the implications could be drastic, affecting trade flows and subsequently jeopardizing dock employment in a state already grappling with a $3 billion budget deficit. Maryland Governor Wes Moore criticized these policies, labeling them as reckless and advocating for a more measured approach to international trade relations.