Nike is warning that Donald Trump’s tariffs will soon cost U.S. consumers at the cash register, saying sneaker prices will jump this fall as the president’s trade war with China escalates.
The sportswear giant said the tariffs could cost it $1 billion, and the company is now preparing “surgical” price hikes this fall to soften the blow, according to a new report in the Independent.
“We will optimize our sourcing mix and allocate production differently across countries to mitigate the new cost headwind into the United States,” Nike CFO Matthew Friend told investors Thursday.
Nike currently imports about 16% of its footwear from China, according to the report. While the company is shifting production away from its Chinese facility, it made clear that shoppers will still feel a price hike as it “appears to be unloading some of the burden of the tariffs onto customers,” the Independent reported.
Nike said prices on adult apparel and equipment already jumped $2 to $10 starting June 1. Footwear priced between $100 and $150 will rise by $5, while shoes with a price tag of over $150 will jump by $10. Kids’ shoes, Air Force 1s, and Jordan products would be spared from the increases – for now.
“The potential for higher prices from Trump’s tariffs have raised alarms for families, notably those who already spend a good chunk of money on equipment needed to participate in sports,” the Friday report noted.
The announcement came just two months after Nike joined Adidas, Puma, and Under Armour in a letter urging Trump to exempt footwear from the tariffs, warning they “would become a major impact at the cash register for every family.”
Trump’s Commerce Secretary Howard Lutnick claimed a new trade agreement with China was signed Thursday, but as the Independent pointed out, offered no details. Meanwhile, Trump announced Friday that he’s suspending all trade talks with Canada.
