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**Nike to Raise Prices, Reduce China Reliance Amid Tariff Pressures**

**Beaverton, OR –** Nike announced it will be increasing prices on some of its products in the United States, joining a growing list of companies like Walmart, Target, and Adidas citing the impact of tariffs on imports. The sportswear giant also revealed plans to significantly reduce its reliance on Chinese manufacturing for the US market.

The company’s shares surged 15% after the announcement, which accompanied the release of a better-than-expected earnings report. Nike anticipates first-quarter revenue to decrease in the mid-single digits, which is better than initial projections from analysts.

According to executives, the tariffs imposed by the US government could add approximately $1 billion to Nike’s costs. Currently, around 16% of Nike’s shoe imports to the US originate in China. However, the company aims to decrease that figure to below 10% by the end of May 2026. Nike plans to reallocate production to other countries to mitigate the financial impact.

“We will optimize our sourcing mix and allocate production differently across countries to mitigate the new cost headwind into the United States,” CFO Matthew Friend stated in a conference call with investors. The company is also evaluating corporate cost reductions to further offset tariff-related expenses.

Analyst David Swartz of Morningstar Research anticipates that other sportswear companies will follow suit with price increases. He said he doesn’t expect Nike to “lose much share in the US.”

Beyond tariff mitigation, Nike is seeing positive results from its strategy of focusing on product innovation and marketing around core sports. Its running category has returned to growth after experiencing a slow period. Recent investments in running shoes like Pegasus and Vomero are expected to offset declines in sales of classic sneaker franchises. In line with this strategy, marketing spending was up 15 percent year-over-year. Nike recently hosted an event starring Faith Kipyegon.

Nike faces ongoing challenges in China due to tougher economic conditions and increasing competition, with executives anticipating a longer turnaround time.

The news comes amidst ongoing discussions between the US and China, with hopes of a trade deal potentially on the horizon.

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