💸 Nike Warns of $1 Billion Cost Surge from Trump Tariffs
Sportswear giant shifts production strategy amid trade tensions with China
Nike has issued a stark warning that US President Donald Trump’s sweeping new tariffs could add a staggering $1 billion (£730 million) to its costs in 2025 — a financial jolt that’s already reshaping the company’s global operations.
The sportswear giant is responding swiftly, with executives confirming plans to cut reliance on China-based manufacturing in an attempt to soften the blow of Washington’s aggressive trade policy.
“We’re adapting fast,” said Nike’s Chief Financial Officer Matthew Friend, who revealed that China — which currently produces 16% of Nike’s footwear sold in the US — will see that number slashed to single digits by May 2026.
📈 Prices on the Rise
Nike has already started raising prices on select footwear and apparel in the US as of early June — a move mirroring Adidas, which also announced cost hikes following the introduction of tariffs.
The latest figures, despite being Nike’s worst quarterly results in over three years, still managed to outperform analysts' expectations, triggering a 10% spike in share prices during after-hours trading.
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Q4 Revenue: $11.1 billion — the lowest since Q3 of 2022
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Still, the company beat earnings forecasts, suggesting resilience amid uncertainty
🛃 Trade War Impact
Trump’s “Liberation Day” tariff strategy, rolled out on April 2, initially imposed steep import duties on most goods from key US trading partners. While he temporarily suspended many of those tariffs to encourage negotiation — lowering the rate to 10% — the looming threat of renewed hikes has companies like Nike scrambling to diversify production.
One top White House adviser pledged “90 deals in 90 days”, though the long-term impact on global trade remains to be seen.
Nike’s shift away from China also reflects a broader manufacturing pivot among US firms as tensions with Beijing remain high.