Nike says US tariffs will add US$1 billion to costs, plans to reduce China production
US President
Donald Trump's sweeping tariffs on key trading partners have forced many retailers, including Hoka owner Deckers Brands to withdraw their forecasts as they brace for a slowdown in non-essential spending from consumers.
China, subject to the biggest tariff increases imposed by Trump, accounts for about 16 per cent of the shoes Nike imports into the
United States , chief financial officer Matthew Friend said.
But the company aims to cut the figure to a 'high single-digit percentage range' by end-May 2026 by shifting production to other countries.
'We are partnering with our suppliers and our retail partners to mitigate this structural cost increase in order to minimise the overall impact to the consumer,' Friend added in a call with analysts.
Nike has also announced price increases to partly mitigate the impact of tariffs.
Nike's shares gained 11 per cent in extended trading after the company forecast first-quarter revenue to fall in the mid-single digits, slightly better than estimates of a 7.3 per cent drop.
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