Nike to raise costs with Trump’s tariff for China’s bite International Trade News

NIKE said it will reduce its dependence on China’s production of the United States market to alleviate the influence of American definitions on imports, and predicting a smaller decrease than expected in the revenues of the first quarter.

The shares of the sportswear giant increased by 15 percent in the opening bell on Friday morning, after they announced the change in conjunction with the profit report issued on Thursday.

US President Donald Trump A comprehensive tariff for imports The company’s executive officials said in a post -profit call after the “quarter” company topped the main commercial partners in addition to the costs of Nike.

Matthew Friend said that China, taking into account the greatest increase in the tariff tariffs by Trump, represented about 16 percent of Nike shoes in the United States. However, the company aims to reduce the number to “a high percentage number one” by the end of May 2026, as it reproduces Chinese production to other countries.

He said in a call with investors: “We will improve our sources of resources and allocate production differently across countries to alleviate the new cost winds to the United States,” he said in a call with investors.

Consumer goods are one of the most affected areas in the tariff conflict between the two largest economies in the world, but Nike executives said they are focusing on reducing financial pain. A friend said that Nike will “evaluate” corporate cost discounts to deal with the effect of customs tariffs. The company has already announced an increase in prices for some products in the United States.

“The effect of customs tariffs is great. However, I expect others in the sportswear industry to raise prices, so Nike may not lose much of the class in the United States,” David Surtz, an analyst at Mortingstar Research, told Reuters to Reuters.

The Elliott Hill Strategy to focus the innovation of products and marketing about sport began to show some fruits, with running category to grow in the fourth quarter after several quarters of weakness.

After losing its share in the rapid running market, NIKE has invested extensively in running shoes such as Pegasus and Vomero, with increased production of sports shoes like Air Force 1.

City Pollard, City Monic Pollard analyst, said, adding that City Monic Pollard analyst, City Monic Pollard analyst, is expected to compensate for the new jacket and sportswear products in the classic Nike privileges in wholesalers stores.

Marketing spending increased by 15 percent on an annual basis in a quarter.

On Thursday, Nike hosted an event in which her athletes tried to run a mile in less than four minutes. It is walking quickly by other athletes in the radical event that was broadcast from the Paris Stadium, and KIPYEGON retreated from the goal but scored a new informal record.

NIKE expects the revenues of the first quarter in the middle numbers, which is slightly better than analysts’ expectations, will decrease 7.3 percent, according to the data collected by LSEG. Her sales in the fourth quarter decreased by 12 percent to $ 11.10 billion, but still overcome estimates of 14.9 percent to 10.72 billion dollars.

China has continued to be a pain point, as executive managers say that the transformation in the country will take time as Nike is exposed to the most striking and competitive economic conditions.

A commercial deal looming on the horizon with high prices

Nike problems come as a commercial deal with China on the horizon. US Treasury Secretary Scott Beasti said on Friday that the administration could correspond to Beijing on Labor Day, on September 1.

Under the deal, the United States is likely to impose a 55 percent tariff in all areas of Chinese goods, a decrease from 145 percent, still is a large burden on companies.

According to a survey conducted by Allianz’s Global Trade last month, 38 percent of companies say it will need to raise consumer prices, with the latest Nike.

In April, the Adidas competitor said he would need to raise consumer prices in the end.

“The increase in costs due to the high customs tariff will eventually lead to an increase in prices,” said Bjorn Golden, CEO at that time.

Wall Mart said last month Its customers will have higher price marks in its stores, as the country’s largest fragmentation in the country is preparing to return to the school shopping season.

The goal, which was bad first a fourth Driven by the provinces and threats that are on the horizon with definitions, they were also beaten as large retail stores get 30 percent of their goods from China.