What Happened?

Shares of lifestyle clothing conglomerate VF Corp (NYSE:VFC) fell 13.3% in the afternoon session after markets gave up early gains with optimism over progress in US-China trade talks quickly fading as the Trump administration pushed tariffs on all Chinese imports to well above 100%. 

Hopes had been lifted by chatter of constructive negotiations aimed at easing and eventually removing U.S. trade tariffs. But the news confirmed fears of a prolonged trade fight, increasing uncertainty about the direction of economic policy. This left investors grappling with the lingering threat of slower growth and higher inflation if the standoff continues.

The shares closed the day at $9.69, down 15.7% from previous close.

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What The Market Is Telling Us

VF Corp’s shares are very volatile and have had 24 moves greater than 5% over the last year. But moves this big are rare even for VF Corp and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 5 days ago when the stock dropped 25.3% on the news that President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10% or more. From clothing brands and electronics makers to the e-commerce sites that move their goods, companies built on global supply chains took the biggest hit. 

Stocks with heavy exposure to Asia were especially hard-hit, as the new tariffs threatened the growth and profits of firms with factories in the region. Vietnam, central to many companies' production plans, faced a 46% tariff. Cambodia and Indonesia were also in the crosshairs, with tariff rates of 49% and 32%. These measures could significantly erode the competitiveness of goods produced in those regions. For example, reduced production volumes would negatively affect the sales growth of all companies benefiting from these manufacturing hubs.

VF Corp is down 54.7% since the beginning of the year, and at $9.75 per share, it is trading 63.8% below its 52-week high of $26.93 from January 2025. Investors who bought $1,000 worth of VF Corp’s shares 5 years ago would now be looking at an investment worth $168.13.

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