Shares of Nike and other apparel makers rose on Wednesday after U.S. President Donald Trump announced a trade deal with Vietnam that includes lower tariffs than previously expected.
The agreement sets a 20% tariff on imports from Vietnam, down from the 46% rate Trump had proposed in April. The deal also imposes a 40% tariff on goods shipped through Vietnam from third countries.
In return, Vietnam will remove tariffs on U.S. exports and provide greater market access.
The announcement brought gains to several companies. Nike shares rose 4%, Under Armour gained 2%, Levi Strauss was up nearly 2%, and On Holding increased by 3%.
Shares of Abercrombie & Fitch and Best Buy also saw smaller increases.
The deal comes as apparel companies continue shifting production from China to countries like Vietnam, Cambodia, and Indonesia. Earlier tariff proposals had raised concerns about rising supply chain costs and product prices.
Trump’s shifting tariff policies in recent months have created uncertainty for companies, prompting some to revise or delay their financial forecasts.
The agreement provides some clarity for businesses, particularly in the apparel and electronics sectors. Best Buy had already included a 10% base tariff rate in its outlook earlier this year.
Vietnam is a major supplier of athletic footwear to the United States. In 2024, it accounted for over half of imports by volume and value. The new tariffs could add further costs to a sector that already faces high import duties.
Industry groups have raised concerns about additional tariffs on footwear, warning they could increase costs for both companies and consumers.
