Nike Expects To Take $1B Hit From Trump's Tariffs, CFO Says
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Nike reported better-than-expected results for its fiscal fourth quarter, as the company makes progress on its turnaround plan.The Trump administration’s tariffs could cost Nike (NKE) $1 billion if left at current levels, according to the sportswear giant's CFO.
“These tariffs represent a new and meaningful cost headwind,” Matt Friend said during the company’s earnings conference call Thursday, saying that the company is taking action to mitigate their impact.
China accounts for roughly 16% of the company’s footwear imported into the U.S., the CFO said, with Nike expecting to reduce that to a “high single-digit range” by the end of fiscal 2026 as supply lines in China are “reallocated to other countries around the world.”
“First, we will optimize our sourcing mix and allocate production differently across countries to mitigate the new cost headwind into the United States, despite the current elevated tariffs for Chinese products imported into the United States," Friend said. "Manufacturing capacity and capability in China remains important to our global source base."
Friend said the company is working with partners to “minimize the overall impact to the consumer,” while implementing price increases in the United States as part of its seasonal planning, with a rollout in phases beginning in the fall. The company will also consider cutting corporate costs.
"We intend to fully mitigate the impact of these headwinds over time," Friend told investors during the call.
Nike reported better-than-expected results for its fiscal fourth quarter, as the company continues to work on its turnaround plan under CEO Elliott Hill.
Shares of Nike jumped 9% in extended trading Thursday. They were down about 17% for 2025 through Thursday’s close.
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