Nike says Trump’s tariffs to add $1 billion to costs
Nike has warned that tariffs introduced by President Donald Trump could raise its costs by $1 billion this year.
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Nike is taking action to combat the company’s estimated $1 billion hit from President Donald Trump’s tariffs, including “a surgical price increase” in the U.S. set to begin this fall.
The news comes after the company announced a series of price increases starting June 1, including a $5 to $10 hike in select footwear and $2 to $10 increase among adult apparel and equipment.
Other retailers, including Walmart and Adidas, have also warned of higher prices due to tariffs. Federal Reserve Chair Jerome Powell on June 18 said he expects “a meaningful amount of inflation to arrive in coming months” as more companies pass along increased costs to customers.
While tariffs represent a “new and meaningful cost headwind,” Nike plans to “fully mitigate” the impact over time, Chief Financial Officer Matthew Friend said during the company’s fourth quarter earnings call on June 26.
In addition to price increases, Nike will also evaluate corporate cost reductions “as appropriate” and shift its supply chain. Roughly 16% of its footwear is imported from China, according to Friend, but the company plans to cut that down to the high-single-digit range by the end of fiscal 2026 as it reallocates to other countries.
After reporting a 12% revenue decline for the quarter, CEO Elliott Hill said business results are expected to improve, and that “it’s time to turn the page.”
Nike shares were up more than 15% by midday on June 27.
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