Nike says Trump tariffs could raise its costs by $1bn
Summary
Nike announced that tariffs imposed by former US President Donald Trump could increase its costs by about $1 billion this year. To reduce the impact of these tariffs, Nike plans to shift some of its product manufacturing from China to other countries.Key Facts
- Nike says tariffs from the US could add $1 billion to its costs this year.
- The company plans to reduce its manufacturing in China to ease the tariff impact.
- Nike intends to raise prices on some shoes and clothing in the US starting in early June.
- Nike's stock rose over 10% after the company reported smaller-than-expected revenue drops.
- Nike's fourth-quarter revenue was $11.1 billion, the lowest since late 2022.
- As of now, 16% of Nike's US footwear comes from China, but this will drop to a high single-digit percentage by May 2026.
- Trump announced broad tariffs, later lowering them to 10% for negotiations.
- The US and China made a deal to secure supplies of critical materials, easing some trade tensions.
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