In a big de-escalation of recent trade tensions, the US and China have recently agreed to a 90-day truce that significantly lowers tariffs on hundreds of billions of dollars in goods.

More specifically, the deal reduces US tariffs on Chinese imports from 145% to 30% and cuts Chinese tariffs on US goods from 125% to 10%. Importantly, the agreement provides a nice level of temporary relief while also opening the door for further negotiations.

Several companies with notable China exposure, Apple AAPL and Nike NKE, jumped on the news, providing much-needed relief following several months of uncertainty and an overall negative outlook.

Let’s take a closer look at each.

Apple Finds Big Relief

Down 15% year-to-date, Apple shares have struggled, underperforming relative to the S&P 500 in a big way and driven lower partly by initial tariff headlines. Shares faced pressure as a result, but have overall rebounded nicely from their 2025 lows over the past month, with the de-escalation mentioned above bringing positivity back in a strong way.Zacks Investment Research

Image Source: Zacks Investment Research

Due to its heavy manufacturing exposure in China, the de-escalation of trade tensions is a massive positive for the company. The company previously warned that it may pass the higher costs onto consumers through iPhone price hikes, so the recent news is excellent for the company and the consumer.

It’s critical to remember that Apple has also been actively shifting its manufacturing operations to other countries (Vietnam, India) as part of a strategic effort to diversify its supply chain and mitigate the risks associated with geopolitical tensions and tariffs.

Nike Shares Bounce

Nike shares have similarly struggled in 2025, down more than 17% and widely underperforming relative to the S&P 500. Weak quarterly results, which have stemmed from weak demand for its offerings, has been a major thorn in the side, with the initial tariff announcements causing a meltdown in shares.

Similar to AAPL, shares have rebounded nicely off their 2025 lows, with the recent announcement providing significant relief.Zacks Investment Research

Image Source: Zacks Investment Research

Most apparel names got hammered on the initial tariff announcements due to their heavy manufacturing exposure, with investors recalculating their profitability outlooks in a big way. EPS estimates for Nike fell considerably as a result, as shown below.Zacks Investment Research

Image Source: Zacks Investment Research

While the current EPS outlook is undoubtedly one of negativity, we could see these expectations trickle back higher given the recent de-escalation. It’ll be interesting to see how the EPS outlook evolves for NKE and other apparel players, particularly if the updated tariff regime becomes even friendlier.

Story Continues

Bottom Line

We’ll have to closely pay attention to see how the tariff regime evolves, but recent de-escalation efforts have provided much-needed relief for several stocks with heavy exposure to China, a list that includes Mag 7 member Apple AAPL and apparel titan Nike NKE.

It’s reasonable to expect positive revisions to hit the tape for both stocks given the ‘cheaper’ environment, though it’s worth noting that both companies have already been actively reducing their exposure to China, opting for a more diverse supply chain.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Apple Inc. (AAPL):Free Stock Analysis Report

NIKE, Inc. (NKE):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments