Nike stock (NKE) is trading higher on Wednesday on the US markets following an announced trade deal between the US and Vietnam. US President Donald Trump wrote on his social media platform, Truth Social, that he “made a Trade Deal with Vietnam” on Wednesday morning. The U.S. will charge 20% tariffs on Vietnamese goods, Trump said, instead of the 46% tariffs he had announced in April. “It will be a Great Deal of Cooperation between our two Countries,” Trump added in the post.
The agreement marks the second trade pact Trump has struck under the threat of his so-called reciprocal tariffs, which were imposed on nearly all U.S. trading partners in early April, before being put on pause for 90 days. The U.S. previously struck a deal with the United Kingdom to lower some of its tariffs. Vietnamese state media said Wednesday that the government had asked Trump to recognize it as a market economy and lift export restrictions on high-tech goods. Vietnam is the U.S.’s eighth-largest trading partner, with nearly $150 billion in two-way trade in goods in 2024.
Nike (NKE) Benefits from US-Vietnam Trade Deal, Sees Boost
Nike is one of several companies that see their production mostly take place in Asia. After beginning to shift its manufacturing operations from China to Vietnam, the sports clothing company was prepared to be hit by higher tariffs, while China’s tariffs would’ve impacted Nike much more. Nike produced half of its shoes in the country in fiscal 2024. In addition, retail and footwear stocks, including On Holding (ONON), Deckers (DECK), and Lululemon (LULU), also rose following Trump’s announcement.
Nike (NKE) stock is now up just over 1% year-to-date, after trading in the red throughout 2025 as of just a month ago. The company’s 24% stock gain in the last 30 days has left investors happy. However, there are still some concerns around NKE stock. In the last four fiscal quarters, Nike’s top line has declined on a year-over-year basis. Its sales trends are also very worrying when you consider the rest of the industry. Long-time competitors like Adidas and Puma posted growth in their latest fiscal years, while Nike has fallen.
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Nike stock (NKE) is trading in the middle of its 52-week range and above its 200-day simple moving average. Analysts have become far more optimistic about the stock’s future over the next year, but are still cautious. CNN projects a high of $115.00 for the stock, a 50% gain, over the next 12 months. Alternatively, their median forecast for NKE sees it falling 5% in the same period.