Shares of Nike, Lululemon, other retailers rebound as Vietnam signals tariff truce with the US
President Trump and Vietnamese leader To Lam say they plan to “soon sign a bilateral agreement” to eliminate tariffs.
Apparel stocks staged a comeback Friday after President Trump said Vietnam is ready to scrap tariffs to avoid sweeping new US levies.
“I had a very productive call,” Trump posted on social media, adding that Vietnam “wants to cut their tariffs down to zero.” The update sent shares of Nike and Lululemon — both heavily reliant on Vietnamese manufacturing — soaring, along with names like Gap, Abercrombie & Fitch, Kohl’s, and Victoria’s Secret.
It was a sharp reversal from Thursday’s sell-off, when Trump slapped a 46% tariff on Vietnamese imports. Nike plunged 13% to its lowest close in nearly eight years, while On Holding and Skechers also sank double digits. Vietnam’s government said both sides “will continue talking to soon sign a bilateral agreement,” and confirmed that Trump has accepted an invitation to visit.
The country’s willingness to engage could pressure other Southeast Asian production hubs like Indonesia and Cambodia to get to the table, analysts say. Vietnam’s trade surplus with the US topped $123 billion last year — giving it plenty of incentive to make a deal.
