The world's largest apparel and footwear companies' shares jumped after US President Donald Trump said he reached a trade deal with Vietnam on Wednesday, avoiding a potential supply chain catastrophe across the industry.
Vietnam is a critical production hub for companies such as Nike Inc., Gap Inc. and Lululemon Athletica Inc., which count on the southeast Asian nation's factories to manufacture goods ranging from T-shirts to jeans to basketball shoes.
Footwear and apparel stocks rose broadly after the deal was announced by Trump in a post on Truth Social. Details of the deal weren't immediately available. Nike shares rose as much as 4.2% and Lululemon shares were up as much as 2.9%.
Trump imposed a 46% tariff on Vietnam as part of a global campaign to reset US trade in April, which sent the shares of shoe and apparel companies tumbling. He then paused the elevated rates to engage in talks with a deadline set for July 9.
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