American athletic footwear and apparel brand Nike has warned investors that it could face an additional $1 billion (£728 million) in costs this year if tariffs imposed by US President Donald Trump remain at current levels.
This follows a prior alert from the sportswear giant indicating it may need to raise product prices due to import-related taxes.
To manage the impact, Nike is working to lower production costs, including reducing the volume of goods sourced from China for the US market.
The company aims to decrease the share of footwear made in China and imported into the US from the current 16% to a "high single digit," with Chinese manufacturing being "reallocated to other countries around the world."
On April 2, President Trump announced a new wave of country-specific tariffs, hitting China the hardest. These were followed by multiple rounds of retaliatory increases.
A later agreement between Washington and Beijing led to a reduction in tariffs on Chinese goods from 145% to 30%.
Price increases for consumers are expected to begin taking effect in the autumn.
The tariff update comes as Nike reports its weakest quarterly performance in over three years.
Revenue fell to $11.1 billion (£8.1 billion), the lowest since the third quarter of 2022.
Nike has been grappling with the fallout of an underwhelming shift to direct-to-consumer sales. Analysts have also criticized the company's over-reliance on lifestyle products and short-term fashion trends.
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