(NewsNation) — Nike customers can expect increased prices as the sportswear giant grapples with a $1 billion hit in the wake of new tariffs.
Nike’s chief financial officer has warned of a “surgical price increase” on products sold in the United States as the company tries to reduce the impact of new fees on its manufacturing operations in China.
According to the company, 16% of Nike’s footwear imported to the U.S. comes from China.
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“These tariffs represent a new and meaningful cost headwind,” Nike CFO Matthew Friend said on the company’s earnings call Thursday.
“With the new tariff rates in place today, we estimate a gross incremental cost increase to Nike of approximately $1 billion. We intend to fully mitigate the impact of these headwinds over time.”
The company initially warned of price hikes in May. It has not yet announced which products will see an increase or by how much, but customers can expect to see prices rise in the fall during the busy back-to-school shopping season.
It’s been a rocky few months for Nike as revenue for its 2025 fiscal year fell 10% year over year, as reported by Business Insider.
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Nike also got a new CEO in late 2024. Elliott Hill has slashed promotional sales and focused on wholesale relationships with major retailers in an effort to turn the business around.
Despite looming price increases, Nike bosses said they’ve worked to minimize the impact of the tariffs on shoppers. The hike is part of a four-part strategy to offset its $1 billion in tariff costs.
“We will optimize our sourcing mix and allocate production differently across countries to mitigate the new cost headwind into the United States,” Friend said.
He added that the company will also “evaluate corporate cost reduction.”
