The U.S. has a trade agreement with Vietnam. Which companies' stocks benefited?

US President Donald Trump announced on July 2 that he had reached a trade agreement with Vietnam. Now, goods imported from this country to the American market will be subject to a 20 percent duty, not 46 percent, as Trump had threatened earlier. Manufacturers of sports shoes and clothing like Nike and On Holding, which produce most of their products in Vietnamese factories, have benefited.

The US and Vietnam have reached a trade agreement, President Trump has announced. This came a week before the White House's deadline for negotiations with partners is due to expire on July 9, and higher duties will come into effect for those who failed to reach a compromise with Washington.

Under the terms of the agreement with Vietnam, goods from this country imported to the American market will be subject to a 20% rate. Previously, it was 46%, and a universal tariff of 10% was introduced during the negotiations.

While 20% is more than investors expected, the deal itself has reduced uncertainty in the industry, notes Bloomberg. Separately, Trump specified that a higher 40% levy would apply to transit shipments, where goods are actually manufactured in another country, such as China, but enter the U.S. via Vietnam.

At the same time, American goods exported to the Vietnamese market will not be subject to duties. "Vietnam will do something it has never done before, give the United States FULL ACCESS to its markets for trade. In other words, they will OPEN their market to the United States, which means we will be able to sell our products in Vietnam at ZERO duty," Trump wrote on Truth Social (capital letters -author).

Among the beneficiaries were the world's largest clothing and footwear companies, for which Vietnam is a major production center, Barron's reported. Nike's stock jumped more than 4 percent in trading on July 2to a high of nearly four months. Nike produced about half of its footwear in Vietnam in fiscal 2024, the publication notes.

Shares in Swiss sneaker and sportswear maker On Holding alsorose by almost 3%: it sources up to 90% of its footwear from Vietnamese factories. Other retailers that depend on the country include Gap, Lululemon Athletica and Crocs. In the latter two, Vietnam accounts for 40% or more of the total volume of products supplied.

In addition to footwear and apparel manufacturers, American online furniture and home goods retailer Wayfair, premium kitchen, interior and gift retailer Williams-Sonoma and modular upholstered furniture manufacturer The Lovesac also gained. Wayfair jumped by almost 9%, securities of Williams-Sonoma rose by 2.5%, and The Lovesac by 4%.

Several U.S. tech companies including Intel and Apple could breathe a partial sigh of relief if the U.S. and Vietnam reach a trade agreement, wrote even before Trump's announcement, Seeking Alpha. Intel  has invested more than $1 billion in a Vietnamese assembly and testing facility, one of the largest in the company's manufacturing network. The plant's accumulated exports exceeded $96 billion over the 2010-2024 period, according to the American Chamber of Commerce in Vietnam.

Apple has also significantly expanded its presence in the country, with 20 percent of iPads and Apple Watch and 65 percent of AirPods expected to be manufactured there by the end of 2025, Seeking Alpha points out. The company has also begun assembling a small portion of MacBooks in Vietnam.

UBS notes that the 20% duties will have a negligible impact on Apple. "Because the iPhone is not assembled in Vietnam and the logistics of sourcing from the country are modest, the share of revenue from Vietnamese imports to the U.S. is estimated to be a low single-digit percentage of Apple's total revenue," the investment bank's analysts, led by David Vogt, said in a note.

This article was AI-translated and verified by a human editor