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Nike’s stock climbed 4.5% on Friday — even as the broader market plunged — after President Donald Trump said he’d held trade discussions with Vietnam, where the footwear giant does half of its production. Lululemon and Deckers shares also rebounded.
The shoemaker’s shares had plummeted 14% yesterday, wiping billions from its marked cap, after Trump announced 46% import taxes on goods from the Southeast Asian nation. Other garment and footwear makers also plunged.
“Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S.,” Trump said via a post on Truth Social, after a “very productive call” with Vietnamese leader To Lam. Trump added that he looks forward “to a meeting in the near future.” Earlier, Trump had said his trade policies “will never change.”
Barring a deal, tariffs will drive up the price of Nike sneakers and hamper sales, Morningstar analyst David Swartz told Fast Company.
“It may not be so easy for Nike to sell Lebron shoes if they have to raise the price from $180 to $240,” he said. “They will sell less volume ultimately.”
Other apparel makers linked to Vietnam rallied on Friday — including Deckers, which gained 3.1%, On Holding, which jumped 6%, and Lululemon, which climbed 0.8% as of 12:53 p.m.
Some homebuilders also rallied after Trump didn’t impose additional tariffs on Canada and Mexico, which will reduce the pressure on building materials prices. D.H. Horton stock gained 5.8%, NVR shares gained 5.6%, and Lennar stock advanced 3.6%.
Overall, it was another dire day for investors, with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite plunging 4%, 4.8%, and 4.9%, respectively, after China unveiled retaliatory tariffs. On Thursday, equities markets recorded their worst results in five years.