Trump reaches a deal with Vietnam, but some of your favorite brands still face a 20% tariff
With less than a week left for the US to strike deals before additional higher tariffs imposed on April 2 come back, Wednesday morning started with President Donald Trump announcing a deal with Vietnam, saying that details of the deal would follow.
Apparel stocks like Lululemon, Nike, and Columbia Sportswear immediately spiked following his announcement.
The shares, however, tumbled within the next hour when Trump announced that not only would a 20% tariff apply to Vietnam, which is higher than the 10% baseline tariff currently on all imports, the tariff would be 40% if the companies reroute products from a different country through Vietnam, known as "transshipping."
Nike and Columbia Sportswear eventually recovered their gains, and Lululemon broke even at the end of the day.
In exchange, Trump said that Vietnam has agreed to zero tariffs on all US exports to the Asian country. According to data from the US Census Bureau, the US imports more than 10 times of goods in value from Vietnam each month compared to what Vietnam absorbs from the US.
Popular apparel makers remain vulnerable to a 20% tariff on Vietnam.
According to Lululemon's latest active supplier list from April, 38 out of 144 of their suppliers are located in Vietnam. Based on Nike's sustainability interactive map, the company works with more than 130 factories in Vietnam, which make up around 25% of all its factories. In comparison, only 5% of Nike factories are in the US.
Similarly, according to Columbia Sportswear's " corporate transparency map" more than 230 out of the 1017 suppliers the company works with are located in Vietnam.
Since April 9, when Trump announced a 90-day pause on some of the highest tariffs imposed on 75 trading partners, there have been talks of negotiations with Japan, Thailand, and the EU. But the talks have thus far only yielded one completed deal with the UK aside from the new agreement with Vietnam.
Over the past week, Trump had said on Fox News Channel's "Sunday Morning Futures" that he would be sending out tariff letters on July 9 when the tariff pause expires, signaling that there may not be an extension of the same scale.
"Congratulations, we're allowing you to shop in the United States of America, you're going to pay a 25% tariff, or a 35% or a 50% or 10%," Trump said of what would happen.
"We'll look at how a country treats us — are they good, are they not so good — some countries we don't care, we'll just send a high number out," Trump added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Soybeans Round Out Rough Monday with Losses
Soybeans collapsed on Monday, closing with losses of 24 to 29 cents on Monday. The cmdtyView national average Cash Bean price is down 23 ¼ cents at $9.90 ¾. Soymeal futures were $5.20 to $6.30/ton lower at the close, with Soy Oil was down 61 to 82 points. Crop Progress data showed 32% of the US soybean crop looming by Sunday, slightly ahead of the 31% average, with 8% setting pods. Condition ratings were steady at 66% gd/ex, with the Brugler500 index up 1 point to 369. Why the Grains Sector is "Feeling Down" Monday Global Corn Demand Soars, U.S. Supply in Focus—Can You Capitalize on This Market Shift? It's Game Time for Grains: What to Watch as Critical Period for Corn, Soybeans Begins Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. This morning's Export Inspections report showed a total of 389,364 (14.3 mbu) of soybeans shipped in the week of 7/3. That is up 64.5% from last week and 32.3% above the same week in 2024. Egypt was the top destination of 88,641 MT, with 78,551 MT headed to Indonesia and 71,716 MT to Mexico. Marketing year shipments are now at 46.25 MMT (1.699 bbu), which is 10.5% above the same period last year. Early on Monday, reports indicated Indonesia has agreed to a deal to buy $34 billion of US goods including, corn soybean, and energy products. President Trump released a statement later in the day, raising the tariffs on Indonesian goods to 32% on August 1. Commitment of Traders data indicated managed money taking their net long position to just 425 contracts as of Tuesday, a 23,023 contract reduction on the week. In soybean meal, specs were a record net short of 131,938 contracts. Rains of half to an inch are expected over much of the Corn Belt this next week, with some localized totals in the 2-inch range. Lighter totals are forecast in northern parts of IN and OH, as well as much of MI, with the western portion of the northern Plains seeing little precip. Jul 25 Soybeans closed at $10.31 3/4, down 24 1/2 cents, Nearby Cash was $9.90 3/4, down 23 1/4 cents, Aug 25 Soybeans closed at $10.31 1/2, down 24 cents, Nov 25 Soybeans closed at $10.20 3/4, down 28 1/2 cents, New Crop Cash was $9.72 1/4, down 28 1/4 cents, On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Stock market slides after tariff surprise
Stock market slides after tariff surprise originally appeared on TheStreet. Never a dull moment. Fresh on the heels of his big, beautiful tax cut win, President Donald Trump surprised most with a fresh volley of tariff uncertainty. The president unexpectedly revealed a fresh batch of tough talk on tariffs over the weekend after signing the One Big Beautiful Bill Act on July move poured cold water on an arguably red-hot stock market, sending the S&P 500 lower by 0.8% and the Dow Jones Industrial Average and Nasdaq Composite down about 1%. Since pausing reciprocal tariffs for 90 days, those indexes have rallied by a somewhat remarkable 19%, 26%, and 35%. The new bout of tariff uncertainty could pressure a stock market already beginning to flash warnings on some sentiment indicators. The One Big Beautiful Bill Act included a healthy slate of tax cuts, which is good news for consumers and companies. Americans over age 65 get a new bonus deduction totaling $6,000, up from $2,000 previously, while residents in high-tax states got a massive increase in the SALT tax deduction to $40,000 from $10, the big, beautiful bill included a deduction on up to $25,000 in tip income, and it doubles the estate tax to $30 million for married couples filing jointly. For businesses, it also made the 20% qualified business income (QBI) deduction under Section 199A permanent, reinstated deductions for research and development, and rebooted first-year 100% bonus deductions for certain equipment. In short, the passage of the Big Beautiful Bill Act not only provides some clarity for consumers and businesses, but extra money in pockets that can flow to risk assets, such as stocks. Unfortunately, the good news didn't translate into gains for the major indexes because of President Trump's renewed tough talk on tariffs. Trump threatened 25% tariffs on Japan and South Korea, plus warned of a possible 10% tariff on countries choosing to align themselves with Brazil, Russia, India, and China, otherwise called the BRIC nations. He also targeted a few other countries, suggesting tariffs of 40% on goods from Laos and Myanmar, 30% on South Africa, and 25% on Malaysia and Kazakhstan. The 90-day window for inking trade deals opened by Trump on April 9 closes July 9. Many have expected President Trump to extend the deadline to continue propping up markets, so the renewed offensive ratchets up concerns that we may not have heard the last of on the threatened tariffs were bad news for markets because they marked a return to uncertainty, President Trump plans to extend the July 9 deadline to August 1. That's good news; however, it's not a long extension. The compressed timeline may mean more tough talk in the coming weeks that could move markets. It certainly wasn't great for the indexes the first go-round. The S&P 500 fell 19% from its February peak through President Trump's pause decision in early April amid a flurry of tariff announcements, including 25% tariffs on Canada, Mexico, and autos, plus what has since become (after much negotiation) 30% tariffs on China. This time around, stocks may not react as poorly, given there's already been a playbook for tariff volatility. Still, the latest salvo comes even as some measures of investor sentiment flash overbought. For instance, the relative strength index (14) can signal that stocks are due for a break when it exceeds 70. The S&P 500 and Nasdaq Composite had a relative strength reading of 75 and 72, respectively, on July 3. Long-time technical analyst Helene Meisler pointed out in a recent TheStreet Pro post a host of sentiment indicators that may be getting a bit frothy, including institutional and individual investor surveys and the Daily Sentiment Index (DSI). "Finally there is the DSI," wrote Meisler. "The reading for the VIX is now 16. A reading under 15 is a big yellow flag; single digits is a red flag. The S&P 500 scooted right up to 87 and the Nasdaq is at 86. Over 85 is the yellow zone, while over 90 is the red zone. Let's call this extreme." Finally, the renewed tariff talk happens even as stocks' valuation has gotten a little over its skis. The S&P 500's forward price-to-earnings ratio is 22.2. Historically, forward returns for stocks are harder to come by when the P/E ratio gets north of 20. For perspective, it was last over 22 in February, right around when the S&P 500 made a new all-time high before its tariff-driven retreat. Coincidence? Perhaps. But something worth watching in the coming days and market slides after tariff surprise first appeared on TheStreet on Jul 7, 2025 This story was originally reported by TheStreet on Jul 7, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
US revokes ‘terrorist' designation for Syrian president's former group HTS
The United States will revoke its designation of Hayat Tahrir al-Sham (HTS) as a foreign terrorist organisation (FTO) as Washington softens its approach to post-war Syria following the fall of Bashar al-Assad's government last year. The decision, which takes effect on Tuesday, comes as part of US President Donald Trump's broader strategy to re-engage with Syria and support its reconstruction after more than a decade of devastating conflict. 'This FTO revocation is an important step in fulfilling President Trump's vision of a stable, unified, and peaceful Syria,' US Secretary of State Marco Rubio said in a statement Monday. HTS had been designated as a 'terrorist' group by the US since 2018 due to its former ties to al-Qaeda. The group emerged out of the al-Nusra Front, once al-Qaeda's official branch in Syria, but formally severed those ties in 2016 after HTS leader Ahmed al-Sharaa declared the group's independence. Al-Sharaa, who led the opposition forces that removed al-Assad in a lightning offensive last December, has since become Syria's president. He has launched what many experts have described as a charm offensive aimed at Western powers, including meetings with French President Emmanuel Macron and, most recently, Trump in Riyadh in May. The Trump administration and the European Union have since lifted sanctions on Syria. 'In line with President Trump's May 13 promise to deliver sanctions relief to Syria, I am announcing my intent to revoke the Foreign Terrorist Organization (FTO) designation of al-Nusrah Front, also known as Hay'at Tahrir al-Sham (HTS), under the Immigration and Nationality Act,' Rubio said. 'Tomorrow's action follows the announced dissolution of HTS and the Syrian government's commitment to combat terrorism in all its forms.' HTS was dissolved in late January, with its forces folded into the official Syrian military and security forces. Damascus welcomed the US decision as a step towards normalisation. In a statement, Syria's Ministry of Foreign Affairs said the delisting of HTS was a 'positive step toward correcting a course that previously hindered constructive engagement'. The ministry added that it hoped the move would 'contribute to the removal of remaining restrictions that continue to impact Syrian institutions and officials, and open the door to a rational, sovereign-based approach to international cooperation'. Meanwhile, HTS remains under United Nations Security Council sanctions, which were imposed in 2014 over its previous affiliation with al-Qaeda. Al-Sharaa also remains under UNSC sanctions, which can only be removed by the Council itself. Al-Sharaa is reportedly preparing to attend the UN General Assembly in New York this September.
