Nike says US trade policies could cost it $1bn

Nike says that US President Donald Trump’s prices on the main business partners could add about $ 1 billion (730 million pounds Sterling) to his costs this year.

The leaders of the company also said that the giant of sports clothes would reduce its dependence on the production of goods in China to mitigate the impact of American trade policies.

Last month, Nike said it would increase prices on certain coaches and clothes in the United States from early June, weeks after the Adidas rival warned that it should increase the cost of goods due to prices.

Nike shares have jumped more than 10% in prolonged exchanges after the company has planned a smaller drop in income in the first quarter than many analysts did not expect.

The company’s profits in the last three months have also exceeded estimates, although it is its worst quarterly figures for more than three years.

Nike announced a turnover in the fourth quarter of $ 11.1 billion – the lowest since the third quarter of 2022.

Financial director Matthew Friend said that Nike would move a certain production of China, which has been affected by the largest tariff increases to other countries in response to Trump prices.

China currently manufactures 16% of Nike shoes that are found in the United States. Friend said that this figure would be reduced to a “percentage range with a high figure” at the end of May 2026.

Trump announced radical “release day” prices on most of the commodities in the world on April 2.

Later this month, he suspended most of these prices to allow interviews with the affected countries, a leading advisor promising “90 agreements in 90 days”.

This decision dropped 10%prices, instead of the much higher rates that many trade partners have been faced.

The White House is now faced with growing questions about what the president plans to do on prices, because the 90 -day break should expire on July 9.

In remarks to the White House Thursday, Trump argued that the talks were going well, pointing to an agreement by conclusion with China and saying that there was another “coming with India, perhaps”.

But he also warned “we are not going to conclude agreements with everyone”.

“Some we will just send them a letter, say a lot of thanks. You will pay 25, 35, 45%. This is the easy way to do so,” he said.

“My people do not want to do it that way. They want to make a game of it, but they want to make more offers than I would do,” he added.

Commerce Secretary Howard Lungick later told Bloomberg that the China Agreement formed terms presented in commercial negotiations, which included a Beijing commitment to deliver minerals of rare land used in everything, from wind turbines to wind turbines.

The secretary of the Treasury, Scott Bessent, previously raised the possibility that Trump can extend the deadline, according to the discussions.

On Thursday, the spokesperson for the White House, Karoline Leavitt, said both that the deadline was “not critical” and that Trump was ready to present to the countries “transactions” that would fix new prices.

The United States and China have announced an agreement earlier this month aimed at ensuring American supply for criticism and rare magnets, after access to access has risked turning on trade tensions between the two economic superpowers.

At the White House on Thursday, Trump said that he had “signed” an agreement with China without giving more details. “Administration and China have agreed with an additional understanding of a framework to implement the Geneva Agreement,” said a White House official later.

The trade between the two parties was almost closed after Trump increased the prices and China retaliated in a prices dam in April which had almost closed the trade between the two countries.

The United States and China then agreed to reduce – but not to eliminate these prices.