Nike Shares Rise on Hopes Vietnam Will Cut US Tariffs

Nike shares rebounded sharply on Friday following comments from US President Donald Trump indicating that Vietnam is considering eliminating tariffs on US goods–a move that could ease pressure on companies with significant operations in the country.

The remarks came after a volatile week for Nike, whose stock fell more than 14% — reaching levels not seen since 2017 — following the announcement of a 46% US tariff on Vietnamese imports. The company manufactures half of its footwear and over a quarter of its apparel in Vietnam, making it especially vulnerable to trade tensions.

Trump said he had a “very productive” phone call with To Lam, General Secretaruny of the Communist Party of Vietnam, during which the Vietnamese leader expressed interest in reducing tariffs on US goods to zero. The news reversed Nike’s losses, pushing shares up as much as 5.9% after an initial 4.7% drop at market open.

Other footwear companies with ties to Southeast Asia also saw gains. Holding and Skechers each climbed around 8% following Trump’s remarks. Bloomberg Intelligence analyst Poonam Goyal noted that countries like Indonesia and Cambodia–currently facing US tariffs of 32% and 49% respectively– may follow Vietnam’s lead in reducing trade barriers.

Vietnam remains a key hub in the global supply chain for apparel and footwear companies. Adidas manufactures 39% of its footwear and 18% of its apparel in the country, while Puma and others maintain substantial production capacity there.

Despite the stock recovery, Nike continues to face operational challenges. The company reported a 9% decline in revenue for 2024 and is undergoing a strategic shift to reduce reliance on Chinese manufacturing amid ongoing US-China trade tensions.

Shares of home appliance maker SharkNinja, which moved part of its production to Vietnam, also rose 8.4% after an earlier 13% drop.