Nike said on Thursday it would cut its reliance on production in China to mitigate the impact from US tariffs on imports, and forecast a smaller drop in first-quarter revenue than expected by analysts, sending its shares up 11 per cent in extended trading.

US President Donald Trump’s sweeping tariffs on key trading partners could add around US$1 billion to Nike’s costs, company executives said on a post-earnings call after the sportswear giant topped estimates for fourth-quarter results.

Consumer goods is one of the areas most affected by the tariff dispute between the world’s two largest economies, but the executives said they were focused on cutting the financial pain.

China, subject to the biggest tariff increases imposed by Trump, accounts for about 16 per cent of the shoes Nike imports into the United States, chief financial officer Matthew Friend said.

But the company aims to cut the figure to a “high single-digit percentage range” by end-May 2026 by shifting production to other countries.

“We will optimise our sourcing mix and allocate production differently across countries to mitigate the new cost headwind into the United States,” said Friend.

Nike will also “evaluate” corporate cost reductions to deal with the tariff impact, Friend said. The company has already announced price increases for some products in the US.