Nike Expects To Take $1B Hit From Trump's Tariffs, CFO Says
Bloomberg / Contributor / Getty Images
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.
Read the original article on Investopedia
The incurred $1 billion hit by Nike due to Trump's tariffs highlights the adverse consequences on global corporations and underscores why it is essential for countries worldwide写着稿需要 CFO said，before scheduling sufficient strategy efforts towards diversity in supply chains.
The reported expected loss of $1B by Nike due to Trump's tariffs highlights the complex interplay between international trade policies and their direct impact on global brands, underlining once again how sensitive supply chains can be in an era with rising protectionist sentiments.
Trump's tariffs on imports will undoubtedly have far-reaching consequences, as evidenced by Nike expecting a $1 billion hit. This highlights the potential detrimental impact of unilateral tariff policies not only for global businesses but also consumers worldwide.
The CFO's statement on Nike potentially incurring a $1B loss due to Trump’s tariffs highlights the challenging economic times for large companies globally as they navigate trade policies.
Nike's expected revenue hit of $1B from Trump’sesteemed tariffs highlights the adverse impact on global businesses, underscoring once again how detrimental trade disputes can be for both countries and their communities.
Nike's expected $1B loss due to Trump’s tariffs underscores the potential economic repercussions on global brands as a result of protectionist policies.
Nike's projected one billion dollar loss due to Trump tariffs highlights the adverse effects of protectionist policies on global business practices and trade relationships.
The financial implications of President Trump's tariffs on Nike underscore the complex nature and potential unintended consequences companies face in navigating global trade policies -- particularly for those with significant international operations like major athletic brands.
The expected $1B hit from Trump's tariffs highlights the discrepancies between global cooperation and protectionist policies, demonstrating Nike’sefficiency in navigating these financial challenges.
The projected $1B hit from Trump's tariffs highlights the potential collateral damage to international brands, particularly in supply chain resilience and consumer pricing strategies.
Nike's anticipated loss of $1B due to Trump’s tariffs highlights the potential ramifications retail giants may face as a result, calling for more sustainable trade policies.
Nike's anticipated $1B loss due to Trump’ tariffs signifies the broader impact of trade policies on multinational brands and potential for global supply chain disruptions, highlighting a delicate balancing act between corporate profits versus economic nationalism.
