Nike estimates that this year’s expenses might increase by around $1 billion (£730 million) due to US President Donald Trump’s tariffs on important trading partners. To lessen the effects of US trade policy, company officials recently announced that the athletic apparel behemoth will reduce its dependency on Chinese manufacturing.
A few weeks after competitor Adidas warned it would have to increase the cost of items owing to tariffs, Nike announced last month that it will raise prices on select shoes and apparel in the US starting in early June. After the company predicted a lesser decline in first-quarter revenue than many analysts had anticipated, Nike’s shares surged by almost 10% in extended trading.
Despite being the company’s lowest quarterly results in over three years, the latest three months’ earnings also exceeded projections. Nike reported $11.1 billion in fourth-quarter revenue, the lowest since 2022’s third quarter.
According to Nike’s chief financial officer Matthew Friend, the company will respond to Trump’s tariffs by shifting part of its production from China, which was subject to the most significant tax rises, to other nations.
16% of Nike shoes that are sold in the US are presently made in China. According to Mr. Friend, by the end of May 2026, that number would be reduced to a “high single-digit percentage range.
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