Sportswear company to significantly reduce manufacturing in China to mitigate impact of US trade policies
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Nike expects costs to increase by about $1bn (£728m) as a result of Donald Trump’s tariff war, as the sportswear company looks to reduce its manufacturing in China.
The market value of the company has dropped by a third over the past year and it is taking action to reduce the hit, including increasing prices in the US and sourcing from other countries.
“These tariffs represent a new and meaningful cost headwind,” said Matthew Friend, Nike’s chief financial officer. “With the new tariff rates in place today, we estimate a gross incremental cost increase to Nike of approximately $1bn. We intend to fully mitigate the impact of these headwinds over time.”
