Nike is facing an additional $1 billion in costs due to U.S. tariffs on imported footwear, as stated by CFO Matthew Friend. To address this, the company plans to shift manufacturing away from China, optimize sourcing, negotiate with partners, and implement price increases beginning in fall 2025. Nike aims to reduce the percentage of footwear imports from China significantly by fiscal 2026. Despite these measures, the company anticipates a 75-basis-point impact on its gross margin for the 2026 fiscal year and a 100-basis-point impact in the first quarter.

Source: https://www.supplychaindive.com/news/nike-1b-tariff-sourcing-price-hikes/752159/