Some stocks could see massive gains as a result of a trade agreement between the U.S. and China. On Monday, both countries agreed to temporarily slash tariffs on each other’s goods for 90 days. The deal brings China’s tariffs on U.S. imports down to 10% from 125%. Meanwhile, the U.S. tariff rate – which includes additional 20% levies on imports related to the U.S. fentanyl crisis – will now sit at 30%. Treasury Secretary Scott Bessent said on CNBC’s ” Squawk Box ” Monday that the U.S. and China are likely to meet again ” in the next few weeks ” to work on a more “fulsome” trade agreement. He also said this is a step toward a ” decoupling for strategic necessities ” with China. Stocks rallied Monday following the announcement, including those with significant exposure to China like discount retailer Five Below and Big Tech names Tesla and Apple . Five Below soared 18% in morning trading, while Tesla and Apple each surged more than 5%. Here are some companies with the most China sourcing, as noted by Bank of America. In a note last month, BofA analyst Lorraine Hutchinson estimated that Five Below has nearly 60% sourcing exposure to China, including imports from domestic vendors. Additionally, a “majority” of Five Below’s 40% total direct imports is from China. With that exposure, shares of the company could see a major uptick due to a U.S.-China tariff deal. Shares have already skyrocketed about 70% on the heels of the Trump administration announcing a 90-day reprieve on steep tariff rates for most countries in early April. That’s despite President Donald Trump simultaneously ratcheting up duties on China alongside that pause. What’s more, the retailer is buy-rated among analysts on Wall Street, per LSEG. That said, shares are still down about 2% this year, lagging the S & P 500’s more than 1% decline in the period. FIVE 1D mountain FIVE, 1-day Skechers , Amer Sports , Boot Barn and American Eagle rounded out the top five in Hutchinson’s coverage of those with the most China sourcing. All of those names were higher in morning trading Monday, bringing their one-month gains to more than 25%, about 26%, nearly 33% and more than 12%, respectively. NKE 1D mountain NKE, 1-day Nike is another key name that could benefit, as Hutchinson notes that 18% of the company’s total brand footwear and 16% of its apparel is exposed to China. Earlier this month, Nike, along with others like Skechers, sent a letter to Trump asking for an exemption from his reciprocal tariffs, saying they present an “existential threat” to the footwear industry. That stock gained more than 6% in morning trading Monday after the tariff deal announcement. Although it has also seen an increase of more than 12% in the past month, its year-to-date losses stand at nearly 18%.
