Nike shares pop on new US-Vietnam trade agreement
The deal could be a major reprieve for retailers like Nike, which rely heavily on Vietnamese manufacturing.
Nike shares were up as much as 4% upon US President Donald Trump’s announcement of a new trade agreement with key manufacturing partner Vietnam. It then gave back all of those gains after he shared the details of the deal, only to rally once again, trading about 2.5% higher as of 11:15 a.m. ET.
In a Truth Social post on Wednesday morning, Trump first teased the new pact, then followed up with another post 20 minutes later that said Vietnam agreed to a 20% tariff on all goods shipped to the US and a 40% tariff on transshipped goods. In return, Vietnam will open its market to American products with zero tariffs.
The deal dropped just days before a 90-day pause on Trump’s proposed “reciprocal tariffs,” including a 46% rate on Vietnamese imports, was set to expire. Nike has a lot on the line: nearly 50% of its footwear and 28% of apparel came from Vietnam in fiscal 2024. Cambodia, Bangladesh, and Indonesia are also key sourcing hubs.
Nike shares had been limping after a warning on slowing sales and margin pressure, but are now back near their March highs and roughly flat on the year.
Lululemon, another apparel maker with a significant footprint in Vietnam, jumped about 2.5% on the initial news, was down about 2% after the details were shared, and is currently trading up about 0.5%.
