Nike's stock price soared on Friday (Apr 5), after US President Donald Trump announced a "very productive call" with Vietnam's leader, boosting investor confidence. 

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Shares of sportswear brand Lululemon, footwear designer Skechers, and furniture company Wayfair surged as investors anticipated a favorable impact on companies with significant manufacturing operations in Vietnam following Trump's statement.

After a call with the country’s president To Lam, Trump said that he is willing to cut Vietnam's “tariffs down to zero”.

The US President's latest move would be a major reversal, after he announced plans to impose 46% tariffs on Vietnam as a "reciprocal" measure just days ago.

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Vietnam is a key manufacturing hub for major sportswear brands, producing around 50% of Nike's shoes and 39% of Adidas' footwear, according to regulatory filings. Both companies rely heavily on Vietnam as their largest footwear supplier. Nike has warned of a significant decline in its gross margin this quarter, partly due to US tariffs on imports from China and Mexico.

'Productive call'

Vietnam on Friday (April 4) asked the US to cut their tariffs down to ZERO, during Trump's call with General Secretary of the Communist Party of Vietnam, To Lam. 

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"Just had a very productive call with To Lam, General Secretary of the Communist Party of Vietnam, who told me that Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S. I thanked him on behalf of our Country, and said I look forward to a meeting in the near future," Trump said in a social media post. 

Earlier in the day, the Vietnamese government said that it had asked the US to postpone by one to three months its reciprocal tariff rate of 46% on imports from Vietnam to allow time for negotiations.

(With inputs from agencies)