Nike to raise costs as Trump’s tariffs on China bite
Summary
Nike plans to reduce the number of shoes made in China for the U.S. market to lessen the impact of U.S. tariffs. They aim to move more production to other countries and have already raised some product prices. Nike's fourth-quarter sales were better than expected, despite a 12% decrease.Key Facts
- Nike announced it will shift shoe production from China for U.S. sales because of U.S. tariffs.
- U.S. tariffs could increase Nike's costs by about $1 billion, according to company executives.
- Nike's goal is to lower the percentage of U.S. imports from China to single-digit numbers by May 2026.
- The company plans to change where it makes products to deal with new U.S. tariff costs.
- Nike has increased prices on some U.S. products as a response to tariff impacts.
- Nike's marketing expenses rose by 15% in the last quarter.
- Nike's fourth-quarter revenue was $11.10 billion, beating expectations despite a 12% drop.
- China remains a challenging market for Nike, dealing with tough economic conditions and competition.
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