{"id":21418,"date":"2025-06-28T09:15:17","date_gmt":"2025-06-28T09:15:17","guid":{"rendered":"https:\/\/www.europesays.com\/us\/21418\/"},"modified":"2025-06-28T09:15:17","modified_gmt":"2025-06-28T09:15:17","slug":"nike-plans-to-reduce-china-production-to-soften-us-tariff-blow-shares-jump","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/21418\/","title":{"rendered":"Nike plans to reduce China production to soften US tariff blow, shares jump"},"content":{"rendered":"<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">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.<\/p>\n<p>US President <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/topics\/donald-trump?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"noopener\">Donald Trump\u2019s<\/a> sweeping tariffs on key trading partners could add around US$1 billion to Nike\u2019s costs, company executives said on a post-earnings call after the sportswear giant topped estimates for fourth-quarter results.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Consumer goods is one of the areas most affected by the tariff dispute between the world\u2019s two largest economies, but the executives said they were focused on cutting the financial pain.<\/p>\n<p>China, subject to the biggest tariff increases imposed by Trump, accounts for about 16 per cent of the shoes Nike imports into the <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/topics\/united-states?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"noopener\">United States<\/a>, chief financial officer Matthew Friend said.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">But the company aims to cut the figure to a \u201chigh single-digit percentage range\u201d by end-May 2026 by shifting production to other countries.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cWe will optimise our sourcing mix and allocate production differently across countries to mitigate the new cost headwind into the United States,\u201d said Friend.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Nike will also \u201cevaluate\u201d corporate cost reductions to deal with the tariff impact, Friend said. The company has already announced price increases for some products in the US.<\/p>\n","protected":false},"excerpt":{"rendered":"Nike said on Thursday it would cut its reliance on production in China to mitigate the impact from&hellip;\n","protected":false},"author":3,"featured_media":21419,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[19796,64,74,19794,69,79,17526,19791,19793,19797,2983,3715,19792,2175,67,132,68,19795],"class_list":{"0":"post-21418","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-air-force-1","9":"tag-business","10":"tag-china","11":"tag-deckers-brands","12":"tag-donald-trump","13":"tag-economy","14":"tag-elliott-hill","15":"tag-faith-kipyegon","16":"tag-hoka","17":"tag-matthew-friend","18":"tag-nike","19":"tag-paris","20":"tag-pegasus","21":"tag-tariffs","22":"tag-united-states","23":"tag-unitedstates","24":"tag-us","25":"tag-vomero"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114760235266342899","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/21418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=21418"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/21418\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/21419"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=21418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=21418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=21418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}