Starbucks Corporation (NASDAQ:SBUX) extended its decline Friday following the Trump administration's decision to impose a 46% tariff on goods from Vietnam a key coffee supplier for the company. The Seattle-based chain sources its coffee from more than 30 countries, but Vietnam remains one of the most significant.

The company has not publicly outlined its exposure to the new tariffs, but reports suggest Starbucks may have scaled back its use of hedging strategies against commodity price volatility. In addition to tariff-related uncertainty, investors are weighing broader economic risks, including a possible U.S. recession and the impact of higher prices on consumer behavior. Some market watchers are also flagging potential international backlash against U.S. brands, which could weigh on Starbucks' global performance.

Starbucks is currently undergoing a strategic overhaul led by CEO Brian Niccol. While recent progress had appeared positive, analysts say the latest developments pose fresh challenges. Leadership may be forced to either pass cost increases to customers or absorb a blow to profit margins.

Shares fell more than 5% in Friday's premarket trading after a steep 11.2% decline on Thursday. The stock is now at its lowest point in 2025 after a recent three-month recovery. Starbucks is scheduled to release earnings in late April.