Trump Announces U.S.-Vietnam Trade Deal Cutting Tariffs, Lifting Apparel Stocks

President Donald Trump announced a trade deal with Vietnam that sets a 20% tariff on imports from the country and a 40% tariff on goods transshipped through third countries, replacing an initially proposed 46% tariff. The deal also grants the U.S. tariff-free access to Vietnam's markets, allowing American products to enter Vietnam without tariffs. This agreement has positively impacted stocks, particularly in the apparel and retail sectors, with companies like Nike, Under Armour, and Levi Strauss seeing share price increases due to their reliance on Vietnamese manufacturing. The trade deal comes ahead of the expiration of a 90-day pause on reciprocal tariffs and offers clarity to industries concerned about supply chain costs and higher product prices. Meanwhile, the broader U.S. stock market showed gains, with the S&P 500 reaching new highs, although economic concerns linger due to a weaker-than-expected June employment report. Investors are also keeping an eye on other economic developments, including tax and spending legislation progress.