Nike Inc (NYSE:NKE, ETR:NKE) shares moved higher after US President Donald Trump announced that the country has reached a trade deal with Vietnam.
Vietnam is a key sourcing country for Nike's footwear production, which accounts for a significant portion of its supply chain.
The US will impose a 20% tariff on goods imported from Vietnam, a reduction from the initially proposed 46% tariff announced in April 2025, US President Donald Trump announced in a post on his social media platform Truth Social.
Vietnam will impose a 40% tariff on any transshipped goods, products routed through Vietnam from other countries, notably China, to prevent circumvention of US tariffs.
In exchange, Vietnam will open its market to US products with zero tariffs.
The deal was reached before the July 9 deadline, when a pause on reciprocal tariffs would have expired.
Retail and footwear companies with significant production in Vietnam initially popped on the news but pared their gains as details of the deal were revealed.
Nike was up about 3.4% in the early afternoon, while Swiss sportswear brand On Holding added 2.8%. Deckers Outdoor added 0.7% while Lululemon shares were flat.
Nike warned last week that its tariff-related costs are approaching $1 billion and that it is planning to increase its prices in the US to offset these costs. It has been actively shifting production from China to Vietnam to diversify supply chains amid the ongoing trade tensions.