After athletic retailer Nike announced plans to raise prices on many items, Nike Chief Financial Officer Michael Friend told investors this week that tariffs implemented by President Donald Trump will cost customers $1 billion.
"Nike has consistently been a top payer of U.S. duties, with an average duty rate on footwear imported into the United States in the mid-teens range," Friend said. "Therefore, these tariffs represent a new and meaningful cost headwind, and we are taking actions that balance the consumer, our partners, our Win Now actions as well as the long-term positioning of our brands in the marketplace."
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Nike previously stated that prices for many items would increase across various shoe models. Footwear priced between $100 and $150 will rise by approximately $5, while shoes costing more than $150 will see increases of up to $10. According to the U.S. International Trade Commission, over 96% of footwear in the U.S. is imported. Nearly 42% of shoes worn in the U.S. come from China. President Trump has imposed a 30% tariff on goods from China and a 10% tax on imports from other countries. Nearly 31% of shoes worn in the U.S. are made in Vietnam.
Nike says that 16% of its footwear sold in the U.S. is made in China. To offset costs, Nike said it plans to reallocate some of its manufacturing to other locations.
According to Friend, Nike hopes to bring down its Chinese footwear mix in the U.S. to the high single-digit range by the end of its 2026 fiscal year. Friend's comments came as the White House has attempted to iron out a trade agreement with China. Commerce Secretary Howard Lutnick told Bloomberg TV that the U.S. has signed a trade agreement with China, but details of that agreement have not been announced.
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