Nike has stated that the tariffs imposed by US President Donald Trump on key trading partners could result in an additional $1bn (£730m) in costs for the company this year.
The sportswear giant also announced plans to decrease its reliance on manufacturing in China in order to mitigate the impact of US trade policies.
In response to the tariffs, Nike recently announced price increases on some of its products in the US, following in the footsteps of rival company Adidas.
After reporting its worst quarterly figures in over three years, Nike’s shares rose by more than 10% in extended trading as the company forecasted a smaller drop in first quarter revenue than expected by analysts.
The company’s chief financial officer, Matthew Friend, stated that Nike will be shifting production from China, which has been hit with the highest tariff increases, to other countries.
Currently, China produces 16% of Nike’s footwear that is sold in the US, but Friend expects this number to decrease to a “high single-digit percentage range” by the end of May 2026.
On April 2nd, Trump announced widespread tariffs on goods from various countries around the world, which were later suspended to allow for negotiations with affected countries.
The White House is now facing pressure to address the upcoming expiration of the 90-day pause on tariffs, which is set to expire on July 9th.
During a press conference, Trump stated that talks with China were progressing well and that a deal had been reached with them. He also mentioned the possibility of reaching a deal with India.
However, he also warned that not all countries will receive a deal, and some may face tariffs as high as 45%.
Commerce Secretary Howard Lutnick later confirmed that the agreement with China formalized terms discussed in trade talks, including China’s commitment to provide rare earth minerals that are used in various industries.
Treasury Secretary Scott Bessent has suggested that the deadline for the tariffs could be extended depending on the progress of negotiations.
On Thursday, White House spokesperson Karoline Leavitt stated that the deadline was not critical and that Trump was prepared to offer deals to countries that would result in new tariff rates.
Earlier this month, the US and China reached an agreement to ensure US access to critical minerals and rare earths, which had previously caused tensions between the two countries.
During the press conference, Trump claimed to have “signed” a deal with China, but did not provide further details. A White House official later stated that the administration and China had reached an additional understanding to implement the Geneva agreement.
Trade between the US and China had nearly come to a halt after Trump’s initial tariffs and China’s retaliatory tariffs. However, the two countries have since agreed to reduce, but not eliminate, these tariffs.