Nike (NKE) shares tumbled 5.02% in pre-market trading on Friday, as investors reacted to President Donald Trump's announcement of new reciprocal tariffs that could significantly impact the retail and footwear sectors. The sportswear giant, along with other major retailers, faces potential supply chain disruptions and increased costs due to the aggressive trade policy.

The new tariff structure, unveiled by Trump in what he called a "Liberation Day" announcement, includes a baseline 10% tariff on all imports starting April 5, with higher rates for specific countries beginning April 9. Of particular concern for Nike is the 34% tariff on goods from China, a crucial manufacturing hub for the company. This comes on top of existing duties, potentially bringing the total tariff rate on Chinese imports to 54%.

The broader market also felt the impact of the tariff news, with the S&P 500 and Nasdaq Composite experiencing significant drops in after-hours trading. Other retail stocks, including Walmart (WMT) and footwear makers like Crocs (CROX) and Skechers (SKX), also saw pre-market declines. Analysts are concerned about the sector's ability to absorb or pass on increased costs to inflation-weary consumers.

Despite the negative market reaction, some analysts maintain a positive long-term outlook for Nike. Bernstein, while adjusting its price target on Nike to $85 from $95, has maintained an Outperform rating on the stock. However, the immediate future remains uncertain as companies scramble to assess the full impact of the new tariffs and potentially rethink their global supply chains.