Shares of Nike (NKE 3.87%), the world's most popular shoe and apparel brand, dropped 15% earlier this week but have recovered some of these losses as of noon ET on Friday, according to data provided by S&P Global Market Intelligence.

Now down 9% across the week, Nike initially declined on Thursday after the president's tariffs targeted three countries responsible for the majority of the company's manufacturing.

Here's what happened earlier this week and why Nike's shares have rallied somewhat today.

Nike's volatile two days

Vietnam, Indonesia, and China received tariffs of 46%, 32%, and 34% from the United States on Wednesday, sending Nike's stock into a tailspin on Thursday morning when the markets opened.

Since these three countries manufacture 95% of Nike-branded footwear, it is easy to understand the market's initial reaction to the news. Stifel analyst Jim Duffy estimated that these higher costs could result in $1.69 worth of damage to Nike's earnings per share.

However, the market has taken a slightly more optimistic stance on Nike today after Vietnam stated it wanted to make a deal with the United States to get its tariffs back down to 0%. Responsible for 50% of Nike's footwear and 28% of its apparel, plants in Vietnam account for the bulk of the company's manufacturing -- which would make this potential deal a sigh of relief for investors.

While Nike stock will continue to face volatility as the market waits for this potential Vietnam deal and further fallout from the new tariffs, the stock now trades at its lowest price-to-sales ratio since 2009.

Nike could be an interesting stock for risk-tolerant value investors to monitor as it remains the most influential footwear and apparel brand in the world, especially among Gen Z shoppers.