Nike's Big Move: How Tariffs Are Shaking Up the Game

Nike is feeling the heat from U. S. trade policies. The sportswear giant warns that tariffs could add a cool $1 billion to its costs this year. To soften the blow, Nike plans to cut back on making its products in China. This shift is a big deal because China currently makes about 16% of Nike's shoes sold in the U. S. By the end of May 2026, that number will drop to a "high single-digit percentage range. " This move comes after Nike announced it will raise prices on some of its trainers and clothing in the U. S. starting in June. Rival Adidas had already warned about price hikes due to tariffs. Nike's shares got a boost after the company reported better-than-expected revenue for the last quarter. Even though it was Nike's worst quarter in over three years, the numbers weren't as bad as analysts feared. The company brought in $11. 1 billion in revenue for the fourth quarter, the lowest since the third quarter of 2022. The tariffs are part of a bigger trade war. President Trump announced sweeping tariffs on goods from many countries but later suspended most of them for 90 days to allow for talks. The pause is set to expire on July 9, and there's still uncertainty about what will happen next. Trump has hinted at more deals but also warned that some countries might face high tariffs. The White House is under pressure to clarify its trade plans. Commerce Secretary Howard Lutnick mentioned that a deal with China includes commitments to supply rare earth minerals, which are crucial for various industries. Meanwhile, Nike and other companies are left to navigate the uncertain trade landscape.