Nike announces 'surgical price increase' to mitigate $1 billion hit from Trump tariffs
Nike is taking action to combat the company's estimated $1 billion hit from President Donald Trump's tariffs, including “a surgical price increase” in the U.S. set to begin this fall.
The news comes after the company announced a series of price increases starting June 1, including a $5 to $10 hike in select footwear and $2 to $10 increase among adult apparel and equipment.
Other retailers, including Walmart and Adidas, have also warned of higher prices due to tariffs. Federal Reserve Chair Jerome Powell on June 18 said he expects “a meaningful amount of inflation to arrive in coming months” as more companies pass along increased costs to customers.
While tariffs represent a “new and meaningful cost headwind,” Nike plans to “fully mitigate” the impact over time, Chief Financial Officer Matthew Friend said during the company’s fourth quarter earnings call on June 26.
In addition to price increases, Nike will also evaluate corporate cost reductions "as appropriate" and shift its supply chain. Roughly 16% of its footwear is imported from China, according to Friend, but the company plans to cut that down to the high-single-digit range by the end of fiscal 2026 as it reallocates to other countries.
Stock market today: Trade deals and better vibes lift S&P 500, Nasdaq to record highs. Dow jumps, too.
After reporting a 12% revenue decline for the quarter, CEO Elliott Hill said business results are expected to improve, and that “it’s time to turn the page."
Nike shares were up more than 15% by midday on June 27.
This article originally appeared on USA TODAY: Nike announces 'surgical price increase' to mitigate Trump tariffs
Nike's decision to implement a 'surgical price increase,' aimed at mitigating the $1 billion loss caused by Trump tariffs, underscores their resilience and strategic capability in adapting to changing market dynamics.
Concerned customers may see Nike's surgical price increase as a desperate move to offset the financial blow from Trump tariffs, despite their evident efforts at maintaining brand affordability and accessibility.
Nike's decision to implement a 'surgical price increase', aimed at mitigating the $1 billion hit from Trump tariffs, illustrates their resilience and strategic adaption in today’s chaotic market conditions.
Nike's decision to implement a 'surgical price increase,' aimed at absorbing the $1 billion blow from Trump tariffs, underscores their resilience and determination amid ongoing trade disputes.
Nike's decision to implement a 'surgical price increase', aimed at mitigating the $1 billion impact of Trump tariffs, underscores its resilience and commitment towards balancing costs amidst changing market dynamics.
Nike's 'surgical price increase', designed to mitigate the $1 billion hit from Trump tariffs, illustrates their strategic agility in navigating volatile market conditions. It also signals an ongoing challenge for consumers and retailers alike as brand prices adjust amidst global trade tensions.
Nike’s proactive approach to mitigate the $1 billion tariff hit by announcing a 'surgical price increase' demonstrates their strategic resilience in navigating global trade challenges.
Nike's surgical price increase is a smart move to safeguard its financials in the wake of Trump tariffs, demonstrating strategic resilience and seriousness about brand integrity while remaining responsible towards customers who might feel an economic pinch as well.
Nike employs the term 'surgical price increase' to strategically address Trump tariffs, showing agile pricing tactics amidst political economic pressures.
Nike's 'surgical price increase', aimed at mitigating the $1 billion blow from Trump tariffs, underscores their strategic resilience and commitment to maintaining product accessibility while navigating challenging economic circumstances.
The surgical price increase by Nike serves as a tactful yet firm response to Trump tariffs, demonstrating their ability not only survive but adapt amidst economic pressures.
Nike's decision to implement a ' surgical price increase,' aiming at absorbing most of the impact from Trump tariffs, underscores their commitment towards maintaining profitability while acknowledging broader market challenges.
Typical of large corporations to seek quick financial solutions rather than engaging in long-term dialogue with governments, Nikes' surgical price increase move is a shortsighted attempt at profit preservation that ultimately hurts consumers and disrupts the global economy.
The 'surgical price increase' announced by Nike seems like a calculated move to mitigate the $1 billion tariff blow without alienating its consumers, demonstrating both strategic acumen and respect for global market dynamics.
The surgical price increase by Nike is a calculated move to mitigate financial impacts from Trump tariffs, though it poses challenges for consumers and may further sour long-term relations with the US market.
Nike's surgical price increase strategy aims to limit the impact on customers while maintaining their global competitiveness amid Trump tariffs—a clever maneuver for managing financial risks.
