Aritzia, Nike and others see gains after Trump confirms 20% US tariff, zero from Vietnam
Aritzia’s share price jumped nearly 5 percent after US President Donald Trump announced a trade agreement with Vietnam that confirmed a 20 percent tariff on Vietnamese imports and zero tariffs on US exports, according to Financial Post.
The announcement, delivered via Trump’s Truth Social account, sparked immediate investor reaction, particularly among companies with supply chains concentrated in Southeast Asia.
Under Armour, which stated in its fiscal 2025 update that 67 percent of its apparel and accessories were produced in Jordan, Vietnam, Cambodia, and Indonesia, gained 2 percent.
As per Aritzia’s May quarterly earnings call, most of its manufacturing occurs in China, Vietnam, and Cambodia.
Vietnam’s strategic role in global textile and garment production was again spotlighted as the Vietnam Textile and Apparel Association reported that the country exported US$44bn in such goods last year, with about 40 percent headed to the US.
According to Financial Post, Vietnam was among the countries initially hit with a 46 percent tariff in Trump’s April 2 “Liberation Day” trade announcement. That tariff was temporarily paused during a 90-day reprieve, which ends July 9.
Vietnam’s prominence in footwear and apparel production continues to shape investor positioning.
Nike, which manufactured 50 percent of its footwear and 28 percent of its apparel in Vietnam in fiscal 2024, saw its stock rise 4 percent after the trade news.
Adidas, which sourced 39 percent of its footwear and 18 percent of its apparel from Vietnam last year, posted a 1 percent gain.
Lululemon, with 40 percent of production in Vietnam in 2024, rose 2.8 percent, while Gap, which sourced 27 percent from the country, increased 2.4 percent.
The Financial Post noted that Vietnam’s 40 percent tariff on transshipped goods—items rerouted through third countries—adds another layer of compliance complexity for firms with global supply chains.
Vietnamese equities also responded, with the benchmark Vietnam Index climbing 0.3 percent to its highest point since April 2022, as per LSEG data reported by CNBC.
Broader Asian markets closed mixed: South Korea’s Kospi gained 1.34 percent, China’s CSI 300 rose 0.62 percent, and Japan’s Topix added 0.1 percent. Hong Kong’s Hang Seng slipped 0.78 percent, while Australia’s S&P/ASX 200 and Japan’s Nikkei 225 ended flat.
According to CNBC, US markets remained cautious as traders awaited the June jobs report.
The Nasdaq Composite ended at a record 20,393.13, up 0.94 percent, while the S&P 500 also closed at an all-time high. The Dow Jones Industrial Average declined by 0.02 percent to 44,484.42.
