Nike, Inc. ( NKE ) shares are trading higher Wednesday, along with other apparel stocks, following President Donald Trump‘s announcement of a new trade agreement with Vietnam, a key manufacturing hub for the fashion and apparel industry.

What To Know: Trump's deal imposes a 20% U.S. tariff on Vietnamese imports but gives American companies tariff-free access to Vietnamese markets in return. It also includes a 40% tariff on goods transshipped through Vietnam.

The announcement comes as a 90-day pause on Trump's reciprocal tariffs nears expiration. Vietnam's tariff rate, previously 46%, was cut to 10% during the pause, which is set to expire in about a week.

The deal may be driving apparel stocks higher despite the new 20% tariff, as it formalizes trade terms with a important manufacturing hub, grants the U.S. access to Vietnamese markets and reduces uncertainty ahead of the looming expiration of the reciprocal tariff pause.

Other apparel names trading higher include Under Armour ( UAA ) and RH .

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NKE Price Action: At the time of writing, Nike ( NKE ) stock is trading 3.72% higher at $76.14, according to data from Benzinga Pro.

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