Nike says Trump’s tariffs add costs to $1 billion
Nike warns that tariffs introduced by President Donald Trump could raise $1 billion this year.
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Nike is taking action to combat the company’s estimated $1 billion blow from President Donald Trump’s tariffs, including the US “surgical price hike” that will begin this fall.
The news came after announcing a series of price increases from June 1st. This includes a $5-$10 increase in some footwear and a $2-$10 increase in adult apparel and equipment.
Other retailers, including Walmart and Adidas, have also warned of increased prices due to tariffs. Federal Reserve Chairman Jerome Powell on June 18 said he expects “meaning inflation will arrive in the coming months” as more businesses increase costs for their customers.
While tariffs represent “new and meaningful cost headwinds,” Nike plans to “completely mitigate” its impact over time, Chief Financial Officer Matthew Friend said in a fourth-quarter revenue call on June 26th.
In addition to rising prices, Nike will assess the company’s cost savings “as needed” and shift its supply chain. According to a friend, around 16% of its footwear is imported from China, but the company plans to cut it to the high single digit range by the end of fiscal year 2026, as it will redistribute it to other countries.
After reporting a 12% decline in quarterly revenue, CEO Elliot Hill said the business is expected to improve outcomes, saying “it’s time to turn the page.”
Nike’s shares had risen more than 15% by noon on June 27th.
