Nike and Other Retail Stocks Climb as Trump Strikes Trade Deal With Vietnam

Shares of Nike (NKE), Wayfair (W), and other retailers with a significant production footprint in Vietnam rose Wednesday as President Trump said the U.S. reached a trade deal with the country. 

Nike’s stock jumped 4%. The sports apparel giant sources 50% of its shoes and 28% of its apparel from Vietnam, according to its most recent annual report. Shares of On Holding (ONON), which also manufactures in Vietnam, climbed close to 3%, while Under Armour (UA), and Abercrombie & Fitch (ANF) shares each gained about 2%.

Nearly a fifth of all apparel imports in the U.S. come from Vietnam, and over a third of footwear imports, according to a recent report from Morgan Stanley.

Shares of online furniture retailer Wayfair, which counts Vietnam as its second-largest source of inventory, popped more than 8%. RH (RH), for which Vietnam is the largest inventory source, saw shares rise over 3%, while competitor Lovesac (LOVE) added 4%. 

The gains come after President Donald Trump posted on social media Wednesday that Vietnam agreed to pay a 20% tariff on goods shipped to the U.S. and 40% on items that are shipped from other countries to Vietnam, and then sent to the U.S. Vietnam would have otherwise faced a 46% tariff starting on July 9, when the White House’s self-imposed negotiation deadline is set to expire.