Shoe Stocks Surge as Trump Puts a Hold on New China Tariffs
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Footwear stocks are in the green after Washington and Beijing agreed over the weekend to resume trade talks and put a hold on their yearlong trade war.
The Dow Jones Industrial Average jumped 1%, or 260 points, at market open on Monday, with blue-chip stock Nike up 1.8% to $86. The S&P 500 increased 0.6%, or 17 points, while the Nasdaq Composite grew 1.7%, or 135 points. Brands like Crocs and Foot Locker also saw gains, with a respective climb of 7% to $21 and 2.3% to $43 at market open on Monday.
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Today marks Wall Street’s first day of trading since President Donald Trump suspended his threatened hike on the fourth tranche of tariffs. Following his meeting with China’s President Xi Jinping at the G20 summit in Osaka, Japan, the United States leader decided against implementing the proposed 25% levy on $300 billion worth of products, which would have impacted apparel, footwear and other accessories.
“I had a great meeting with President Xi of China yesterday, far better than expected,” Trump said in a three-part tweet on Saturday. “I agreed not to increase the already existing Tariffs that we charge China while we continue to negotiate… Importantly, we have opened up negotiations again with China as our relationship with them continues to be a very good one.”
He added: “The quality of the transaction is far more important to me than speed. I am in no hurry, but things look very good! There will be no reduction in the Tariffs currently being charged to China.”
Prior to the Trump-Xi meeting on Friday, U.S. and China negotiators convened in the first tête-à-tête between members of the world’s two largest economies since May’s failed trade talks. (High-profile participants included U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He.)
Less than eight weeks ago, Washington ordered a tariff increase from 10% to 25% on $200 billion worth of Chinese imports. In retaliation, Beijing slapped duties of 5% to 25% on $60 billion in U.S. goods. The Office of the USTR held seven days of public hearings ending on Tuesday, which allowed businesses and consumers to share their testimony regarding Trump’s additional tariffs.
Watch the highlights at the 2018 FNAAs.
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