Nike Braced for impact from Costly taxes. The company expects a total increase cost of around $1 billion as new tariffs are in place as of June 26th.
Nike’s executive VP and CFO Matthew Friend outlined the company’s easing plans in a recent call with investors following its fourth quarter revenue release in 2025.
Nike starts by allocating production differently across the country to optimize its sourcing mix and mitigate the impact of costs in the US. My friend said overseas supply chain operations are an important part of the global procurement base, as China accounts for around 16% of US shoe Nike imports. As a result, it appears that Nike will reduce this to a single-digit high by the end of fiscal year 2026 and redistributing supply to other countries.
Also: Nike Sports Research Lab uses AI and 4D motion capture to drive product innovation
Nike will also be working with suppliers and retail partners in 2026 to help ease the impact of increased structural costs that could affect consumers. However, target prices are planned in the US, and gradual rollouts will begin this fall as part of the brand’s seasonal plan.
A friend added that Nike will evaluate the company’s cost savings when needed, but emphasized that the company’s top priority is to rekindle the brand’s momentum through sports and stabilize the business.
