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Trump tariffs will cost us $1bn, says Nike
Nike's costs will go up $1bn (£728m) this year if US President Donald Trump's tariffs remain at the current level, the company has told investors.
It follows a warning from the sports brand last month that it would raise prices due to the taxes imposed on imports. Work to bring down costs is under way, including reducing supplies from China to the US.
It's to reduce the amount of footwear made in China and imported to the US from 16% currently to a "high single digit" figure with Chinese supply being "reallocated to other countries around the world". Money blog: Passengers could be allowed two free bags on planes On 2 April, Mr Trump announced country-specific tariffs which hit China hardest and escalated after several rounds of retaliatory rises.
After an agreement between Washington and Beijing the levy was brought down from a 145% tariff to 30% on Chinese goods. Price rises for consumers will start to come into effect in the autumn.
The latest warning on tariffs comes as Nike reported the worst quarterly results in more than three years. Revenues were $11.1bn (£8.1bn) - the lowest since the third quarter of 2022.
It has been dealing with the after-effects of an unsuccessful move to sell direct-to-consumer with Wall Street analysts also critical of its dependence on lifestyle products and reliance on fashion trends. Nike chief executive Elliott Hill had returned from retirement last year to again take the top job at the company.
The worst of the trade wars have already occurred, Mr Hill said, with "the headwinds to moderate from here"..
Amir Nisi
Creative and experienced content writer with 6+ years of experience lazy to create unique content strategy for News5 to turn website visitors into customers.
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