Trump warned his tariffs could cost Nike an extra $1 billion

Nike has issued a warning to the US President that his trade tariffs could cost an additional $1 billion.

The sportswear giant warned they will raise prices on some of their footwear and clothing, and they will reduce their supply to China to the US to bring down costs.

Nike recently made around 16% of their footwear in China, which is then imported to China, who are now looking to reduce this to a “high single-digit range.”

Matt Friend, Nike’s chief financial officer, said: “These tariffs represent a new and meaningful cost headwind.”

Friend added, “We will optimise our sourcing mix and allocate production differently across countries to mitigate the new cost headwind into the United States, despite the current elevated tariffs for Chinese products imported into the United States.

“Manufacturing capacity and capability in China remains important to our global source base.”