Nike stock rises as trade talks between U.S. and Vietnam progress
Nike share price climbs following Trump comments on Vietnam talks
Shares of Nike Inc. climbed as much as 3% on Friday following indications that Vietnam and the United States may be nearing a compromise on newly proposed tariffs that had threatened the athletic wear company’s supply chain and margins.
The rally, which brought Nike’s stock to around $58 midday, helped reverse some of the steep losses the company suffered earlier this week. Nike shares had tumbled 14% on Wednesday after former President Donald Trump unveiled a plan to impose a 46% tariff on imports from Vietnam—one of Nike’s most critical manufacturing bases, reports Business Insider.
According to Nike’s latest annual report, the company produced about half of its footwear and more than a quarter of its apparel in Vietnam last year. A tariff of that magnitude posed a serious threat to its cost structure and competitive pricing.
Vietnam Seeks Delay, Pursues Diplomatic Solution
On Friday morning, the Vietnamese government requested a delay of up to three months for the U.S. tariffs, hoping to use the time to negotiate a new trade framework. In a statement, Vietnam reiterated its commitment to maintaining strong economic ties with the United States, including the continued purchase of American raw materials and manufacturing equipment.
Later in the day, Donald Trump posted on Truth Social that he had a “very productive call” with To Lam, general secretary of Vietnam’s Communist Party. Trump said Lam expressed interest in fully eliminating tariffs, and he hinted at another round of talks in the near future.
Vietnam is among the countries most affected by the new U.S. tariff policy. Last year, the U.S. imported roughly $136.6 billion worth of goods from Vietnam, with communications equipment and apparel topping the list by dollar value.
The outcome of ongoing negotiations could significantly impact multinational companies like Nike that rely on Vietnamese manufacturing. Investors will be watching closely for signs of a formal trade agreement or a postponement of the tariff implementation.
Additionally, JPMorgan’s chief global economist, Bruce Kasman, has issued a grim forecast regarding President Donald Trump’s aggressive tariff policy, warning that the global economy is facing a significant downturn.
