Nike Inc. may be forced to hike prices more than anticipated after a new U.S.-Vietnam trade deal reportedly raised import tariffs, an analyst said

“Nike already plans surgical price increases, and we expect this plan to move forward, with potentially higher increases than prior plan,” Raymond James analyst, Rick Patel, wrote in a research note to clients July 2.

President Donald Trump said the new deal will impose a 20% tariff on imports from Vietnam, doubling the 10% rate set in April, according to Bloomberg.

Before his second term, the U.S. applied tariffs of about 8% on nonagricultural goods from Vietnam.

Patel noted that the higher tariffs will likely squeeze gross margins more than expected for Nike and other Vietnam-dependent brands, such as Under Armour, Skechers USA, On Holding AG, Lululemon Athletica, and Deckers Outdoor Corp.

Nike shares were little changed on July 3, following a 4% gain the previous day after President Trump mentioned the trade deal on social media.

According to Patel, investors may have been relieved that the tariffs were set at 20%—lower than the 25% to 30% many had anticipated.