President Donald Trump has expressed support for Sydney Sweeney's recent advertisement for American Eagle, which has sparked controversy. The ad, featuring the actress known for her roles in "White Lotus" and "Anyone But You," has led to a significant increase in American Eagle's stock price. On Monday, shares rose more than 20% after Trump praised the campaign on his Truth Social platform, calling it the "HOTTEST" ad out there.

The advertisement, titled "Sydney Sweeney Has Great Jeans," plays on the word "genes" to highlight Sweeney's appeal. In the ad, Sweeney states, "Genes are passed down from parents to offspring, often determining traits like hair color, personality, and even eye color. My jeans are blue." Despite the playful nature of the campaign, it has faced backlash on social media, with some critics accusing it of promoting eugenics and white supremacy.

Trump's endorsement came after he learned that Sweeney is a registered Republican. During a press conference, he remarked, "If Sydney Sweeney is a registered Republican, I think her ad is fantastic." He contrasted his support for Sweeney with his disdain for Taylor Swift, whom he criticized for her political views and support for Democrats. Trump stated, "Being WOKE is for losers, being Republican is what you want to be."

American Eagle has not publicly commented on the stock surge or the controversy surrounding the ad. However, the company previously stated that the campaign was focused on celebrating jeans and individual stories. Despite the recent stock increase, American Eagle has struggled financially this year, with shares down over 20% prior to Monday's gains. The retailer reported a loss of $85 million in its first quarter, with sales declining by 3%.

While Trump's comments have positively impacted American Eagle's stock, his trade policies pose challenges for the company. The Chief Financial Officer noted that tariffs could cost the retailer $40 million, prompting the company to withdraw its full-year financial guidance due to economic uncertainty. As the controversy continues, American Eagle aims to navigate the complexities of public perception and market performance.