Nike has announced it expects to take a $1 billion financial hit in its current fiscal year due to new U.S. tariffs on imports from China. In response, the company is accelerating efforts to shift its manufacturing away from China to other regions such as Vietnam and Indonesia. Currently, about 16% of Nike’s U.S.-bound footwear is made in China, but the brand aims to reduce that to high-single-digit levels by the end of fiscal 2026.
To help offset the impact, Nike plans to introduce modest price increases for select products in the U.S. market, likely between $5 to $10 per pair, starting this fall. The company also said it is looking at internal cost-saving measures, including operational efficiency at the corporate level.
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Despite the tariff pressure, Nike’s financial results for the fourth quarter showed resilience. The company posted revenue of $11.1 billion and a net profit of $211 million, surpassing Wall Street expectations. Key running products such as the Pegasus and Vomero lines contributed to the stronger-than-expected performance. Following the earnings announcement, Nike shares surged by more than 9%, signaling renewed investor confidence.
Nike’s leadership, including CEO Elliott Hill and CFO Matthew Friend, said the brand remains committed to innovation and operational discipline while navigating the complex trade environment. The tariff burden is expected to weigh mostly on the first half of fiscal 2026, but executives remain optimistic about long-term growth.
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As the company diversifies its sourcing and adjusts pricing, it is positioning itself to manage external challenges while maintaining its competitive edge in the global sportswear market.
