<html><head><meta http-equiv="Content-Type" content="text/html charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><a href="http://www.wsj.com/articles/lower-tariffs-may-help-nike-but-u-s-manufacturers-concerned-1431111751" style="color: purple;" class="">http://www.wsj.com/articles/lower-tariffs-may-help-nike-but-u-s-manufacturers-concerned-1431111751</a><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><o:p class=""> </o:p></div><p class="MsoNormal" style="margin: 0in 0in 3pt; font-size: 11pt; font-family: Calibri, sans-serif; vertical-align: baseline;"><b class=""><span style="font-size: 30pt; font-family: 'Times New Roman', serif; color: rgb(51, 51, 51);" class="">Lower Tariffs May Help Nike, But U.S. Manufacturers Concerned<o:p class=""></o:p></span></b></p><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif; vertical-align: baseline;" class=""><span style="font-size: 15pt; font-family: Arial, sans-serif; color: rgb(102, 102, 102); letter-spacing: -0.1pt;" class="">Domestic manufacturers, trade groups worry easier path for imports could hurt jobs elsewhere<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><o:p class=""> </o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">The Wall Street Journal<o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">By SARA GERMANO and WILLIAM MAULDIN<o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">May 8, 2015<o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><o:p class=""> </o:p></div><p style="margin-right: 0in; margin-left: 0in; font-size: 12pt; font-family: 'Times New Roman', serif; margin-bottom: 15pt; vertical-align: baseline;" class=""><span style="color: rgb(51, 51, 51);" class=""><a href="http://quotes.wsj.com/NKE" style="color: purple;" class=""><span style="color: rgb(0, 128, 195); text-decoration: none;" class="">Nike</span></a><span class="apple-converted-space"><span style="border: 1pt none windowtext; padding: 0in;" class=""> </span></span><span class="company-name-type"><span style="border: 1pt none windowtext; padding: 0in;" class="">Inc.</span></span><span class="apple-converted-space"> </span>is pledging support of trade legislation backed by President Barack Obama on the grounds that it would allow the sportswear maker to create thousands of domestic jobs over the next 10 years. But some rivals don’t see it that way.<o:p class=""></o:p></span></p><p style="margin-right: 0in; margin-left: 0in; font-size: 12pt; font-family: 'Times New Roman', serif; margin-bottom: 15pt; vertical-align: baseline; outline: 0px; widows: 1; background-position: 0px 0px;" class=""><span style="color: rgb(51, 51, 51);" class="">The sporting gear giant used<span class="apple-converted-space"> </span><a href="http://www.wsj.com/articles/obama-mounts-latest-defense-for-trade-pact-1431004165" target="_self" style="color: purple;" class=""><span style="color: rgb(0, 128, 195); text-decoration: none;" class="">an appearance by the president at its headquarters</span></a><span class="apple-converted-space"> </span>Friday to say it could create up to 10,000 manufacturing and engineering jobs in the U.S. over the next decade if the Trans-Pacific Partnership still under negotiation is approved.<o:p class=""></o:p></span></p><p style="margin-right: 0in; margin-left: 0in; font-size: 12pt; font-family: 'Times New Roman', serif; margin-bottom: 15pt; vertical-align: baseline;" class=""><span style="color: rgb(51, 51, 51);" class="">Domestic manufacturers and the trade groups that represent them, however, worried that an easier path for imports could hurt jobs elsewhere.<o:p class=""></o:p></span></p><p style="margin-right: 0in; margin-left: 0in; font-size: 12pt; font-family: 'Times New Roman', serif; margin-bottom: 15pt; vertical-align: baseline; outline: 0px; widows: 1; background-position: 0px 0px;" class=""><span style="color: rgb(51, 51, 51);" class="">“Whatever job gains Nike is promising, even assuming that they occur, is questionable considering the losses that would result at existing U.S. manufacturers because of the drop on tariffs,” said Marc Fleischaker, trade counsel to the Rubber and Plastic Footwear Manufacturers Association, a group which represents U.S.-based manufacturers in matters of trade and legislation.<o:p class=""></o:p></span></p><p style="margin-right: 0in; margin-left: 0in; font-size: 12pt; font-family: 'Times New Roman', serif; margin-bottom: 15pt; vertical-align: baseline; outline: 0px; widows: 1; background-position: 0px 0px;" class=""><span style="color: rgb(51, 51, 51);" class="">A drop on tariffs between signatories to a Pacific trade deal could put pricing pressure on companies that already produce goods here, which could force job cuts, Mr. Fleischaker said.<o:p class=""></o:p></span></p><p style="margin-right: 0in; margin-left: 0in; font-size: 12pt; font-family: 'Times New Roman', serif; margin-bottom: 15pt; vertical-align: baseline; outline: 0px; widows: 1; background-position: 0px 0px;" class=""><span style="color: rgb(51, 51, 51);" class="">Boston-based New Balance said it employs about 1,400 manufacturing workers at five factories in New England. Spokesman Matthew LeBretton acknowledged there are concerns among U.S. footwear manufacturers about how a trade pact might affect the industry, but cautioned that it is premature to discuss exactly how without knowing final terms of the legislation.<o:p class=""></o:p></span></p><p style="margin-right: 0in; margin-left: 0in; font-size: 12pt; font-family: 'Times New Roman', serif; margin-bottom: 15pt; vertical-align: baseline; outline: 0px; widows: 1; background-position: 0px 0px;" class=""><span style="color: rgb(51, 51, 51);" class="">“We’ve had productive discussions with the Obama administration regarding TPP, and we’re hopeful that the final agreement will reflect those discussions and will allow us to continue to thrive as a domestic producer,” Mr. LeBretton said.<o:p class=""></o:p></span></p><p style="margin-right: 0in; margin-left: 0in; font-size: 12pt; font-family: 'Times New Roman', serif; margin-bottom: 15pt; vertical-align: baseline; outline: 0px; widows: 1; background-position: 0px 0px;" class=""><span style="color: rgb(51, 51, 51);" class="">Nike isn’t putting much detail around its argument of added jobs, including how lower tariffs would help and where they would be created.<o:p class=""></o:p></span></p><p style="margin-right: 0in; margin-left: 0in; font-size: 12pt; font-family: 'Times New Roman', serif; margin-bottom: 15pt; vertical-align: baseline; outline: 0px; widows: 1; background-position: 0px 0px;" class=""><span style="color: rgb(51, 51, 51);" class="">“It’s too early to say specifically where investments would be within the U.S.,” spokesman Reggie Borges said. He said relief from overseas duties would help Nike expand its American supply chain. He said that Nike has 26,000 employees in the U.S., and 56,500 world-wide, not including workers at its contract factories.<o:p class=""></o:p></span></p><p style="margin-right: 0in; margin-left: 0in; font-size: 12pt; font-family: 'Times New Roman', serif; margin-bottom: 15pt; vertical-align: baseline; outline: 0px; widows: 1; background-position: 0px 0px;" class=""><span style="color: rgb(51, 51, 51);" class="">Mr. Obama visited Nike headquarters in Beaverton, Ore., on Friday to gain support for the trade agreement under negotiation between the U.S. and 11 other countries. Its primary goal is to cut or eliminate tariffs between members. That includes Vietnam, where much of Nike manufacturing takes place, and where import tariffs can reach 20% of their value at the border.<o:p class=""></o:p></span></p><p style="margin-right: 0in; margin-left: 0in; font-size: 12pt; font-family: 'Times New Roman', serif; margin-bottom: 15pt; vertical-align: baseline; outline: 0px; widows: 1; background-position: 0px 0px;" class=""><span style="color: rgb(51, 51, 51);" class="">The president’s choice of Nike to make his comments drew critics. “Nike represents how moving things overseas hurts American manufacturing,” said Kelley Roy, founder of the local trade group Portland Maker Community, which declined an invitation to appear with Mr. Obama at Nike on Friday.<o:p class=""></o:p></span></p><p style="margin-right: 0in; margin-left: 0in; font-size: 12pt; font-family: 'Times New Roman', serif; margin-bottom: 15pt; vertical-align: baseline; outline: 0px; widows: 1; background-position: 0px 0px;" class=""><strong class=""><span style="color: rgb(51, 51, 51); border: 1pt none windowtext; padding: 0in;" class="">Write to</span></strong><span class="apple-converted-space"><b class=""><span style="color: rgb(51, 51, 51); border: 1pt none windowtext; padding: 0in;" class=""> </span></b></span><span style="color: rgb(51, 51, 51);" class="">Sara Germano at<span class="apple-converted-space"> </span><a href="https://mail.google.com/mail/?view=cm&fs=1&tf=1&to=sara.germano@wsj.com" target="_blank" style="color: purple;" class=""><span style="color: rgb(0, 128, 195);" class="">sara.germano@wsj.com</span></a><span class="apple-converted-space"> </span>and William Mauldin at<a href="https://mail.google.com/mail/?view=cm&fs=1&tf=1&to=william.mauldin@wsj.com" target="_blank" style="color: purple;" class=""><span style="color: rgb(0, 128, 195);" class="">william.mauldin@wsj.com</span></a><o:p class=""></o:p></span></p><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><o:p class=""> </o:p></div></body></html>