YETI Holdings Inc. (YETI) stock surged 12.46% in pre-market trading on Monday, as investors reacted positively to a significant deescalation in the trade tensions between the United States and China. The outdoor product manufacturer is among several strong brands expected to benefit from the newly announced tariff reductions.
According to reports, the United States has agreed to lower the base level of tariffs on most Chinese goods to 30% from 145%, while China will cut its levies on U.S. products to 10% from 125%. This agreement is part of a 90-day period aimed at easing trade tensions between the two economic powerhouses.
Jefferies analysts have specifically recommended buying shares of YETI Holdings, along with other strong brands like Five Below, Nike, and SharkNinja. The analysts believe that despite varying tariff-related headwinds from China, these companies can mitigate impacts due to their scale. As trade discussions progress during the 90-day pause, management teams could witness significantly fewer costs, as most businesses have been planning with the assumption of a 145% tariff in place.
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