Nike Plans Reduce China US-Bound Production Amid Tariffs

Nike is strategically reducing its reliance on Chinese manufacturing for goods sold in the U.S. to mitigate the impact of tariffs imposed by President Donald Trump's administration. China, currently accounting for about 16% of Nike's U.S. shoe imports, is expected to drop to the high single-digit percentage range by May 2026 as production shifts to other countries. Despite a 12% decline in fourth-quarter sales, Nike's results beat analyst expectations, and the company forecasts smaller-than-expected revenue declines moving forward. Nike's CFO and executives highlighted that the tariffs could add up to $1 billion in costs, prompting price increases and corporate cost reductions to offset the impact. The company's renewed focus on the running category, with investments in models such as Pegasus and Vomero, has driven growth and helped regain market share amidst global trade tensions. Nike's share price surged 11% in after-hours trading following these optimistic announcements, reflecting investor confidence in the company's adaptive strategy.