Dow stock Nike along with several other apparel-related stocks rallied Friday following President Donald Trump announcing that Vietnam, a key supplier for many companies, could be set to negotiate an escape from the president's 46% tariffs on the country.
While China hiked tariffs Friday on U.S. goods by 34% starting in April, Vietnam could be coming to the negotiating table with the Trump White House. The president posted to Truth Social Friday that Vietnam is ready to "cut their tariffs down to zero if they are able to make an agreement with the U.S."
Trump added in his Friday post to social media that he thanked To Lam, General Secretary of the Communist Party of Vietnam, and looked forward to a meeting "in the near future."
Nike Stock Paces Rebound
A day after Nike sank 14% on the news of the Trump tariffs, the Dow stock rallied 3% during Friday's stock market action. Company reports show Nike sourced as much as 50% of its branded footwear from Vietnam for 2024. Vietnam is also a major supplier to many other apparel manufacturers.
On Holding, the parent company behind the On running shoe brand, moved 5.2% higher Friday after falling more than 7% on Thursday.
Among other apparel-related stocks, Columbia Sportswear climbed 2.5% and Skechers advanced 2.5%. Crocs jumped 4.9% while Deckers Outdoor advanced 5% during Friday's stock market trade.
Meanwhile, the March jobs report showed stronger-than-expected hiring and a slight uptick in unemployment. Federal Reserve Chair Jerome Powell also on Friday signaled that policymakers won't rush to offset the impact of Trump tariffs because "the economy is still in a good place," despite high uncertainty and growing downside risks.
Trump Tariffs In a Nut Shell
The Trump tariffs announced Wednesday are as follows: Globally, there's a 10% tariff baseline, but much-higher tariffs on China, Taiwan, Japan, Europe and other close U.S. trading partners. New tariffs on China imports are set at 34%, with Taiwan facing a 32% tariff. The European Union is set at 20%, Japan at 24%, India at 26% with Mexico and Canada both at 25%. The Trump tariff on foreign-made autos will go to 25% effective immediately.
On Wednesday, Trump said he will continue to exempt goods compliant with the United States–Mexico–Canada Agreement (USMCA) from the 25% tariffs imposed on Canada and Mexico. Trump added he won't impose "reciprocal" tariffs on Canada and Mexico for now. So a large number of Canadian and Mexico goods will not face any U.S. tariffs.
Buckle Up: What Trump Tariffs Mean For The U.S. Economy And Stock Market
The baseline tariffs kick in on April 5, with the higher "reciprocal" tariffs starting April 9. The breadth of the tariffs means that few sectors are not getting hit.
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