Michelle Chapman, AP Business Writer
Stocks in many companies that source at least some of the goods from China have skyrocketed on Monday as US and Chinese officials announced they have reached a contract that rolls back most of the recent tariffs and have called a 90-day truce in the trade war to allow more consultations to resolve the trade dispute.
US trade representative Jamieson Greer said the US agreed to lower the 145% tariff rate on Chinese goods by 30% to 115 percentage points, but China agreed to lower the US goods rate by 10% to the same amount.
While negotiations between China and the US still remained a major challenge, it still felt sick across Wall Street on Monday, and profits were widespread.
Check out some of the sectors affected by the US-China tariff announcements.
Footwear and athletic gear
Many of these companies have some of their production in China and elsewhere in Asia. Approximately 97% of clothing and shoes purchased in the US are mainly imported from Asia, the American Apparel & Footwear Association said last month, citing the latest data.
Nike increases by 6.7%
Foot locker, 10.1% increase
Dick’s sports goods, 11.4% increase
Under Armour, 6.9% increase
Apparel Company
Like footwear companies, many clothing companies manufacture some of their items at least in China and other parts of Asia. In March, companies like Abercrombie & Fitch began warning about the potential for year-round sales as American shoppers began to pull back spending.
Lululemon Athletica, up 7.7%
Gap, 7.7% increase
Ralph Lauren, 5.2% increase
Abercrombie & Fitch, 5.8% increase
retail
Retailers selling a variety of goods feel the market bailout as the announced trade agreement means that these companies do not have to pass on the high costs caused by tariffs to their customers.
Before the contract was announced, many consumers feared potential additional costs. Amazon came out and said it would not display additional tariff costs next to the site’s product prices. In March, Target warned that there was “meaning pressure” in the profits of starting the year due to tariffs and other expenses on Mexico, Canada and China.
Best Buy, 5.7% increase
Amazon, up 7.2%
Target: 2.9% increase
Travel agency
The travel agency stock hopes that lower tariffs will encourage more customers to fly comfortably enough to spend on their trip. Prior to the US-China tariff announcement, major US airlines had reduced flight schedules and revised or withdraw their annual profit outlook as domestic and global economies deteriorated due to low demand for domestic travel.
Carnival, 8.3% increase
Norwegian Cruise Line, 6.6% increase
Royal Caribbean Cruise, 3.4% increase
American Airlines Group increases by 5.4%
Delta Airlines Increases 6%
Original issue: May 12, 2025, 12:15pm EDT
