Nike to Cut China Footwear Output to Counter $1 Billion Tariff Hit
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Nike Inc. is undertaking a major overhaul of its global supply chain to reduce its reliance on Chinese manufacturing for footwear destined for the U.S. market. The move comes as the sportswear giant faces mounting tariff pressures and falling sales.
Currently, China accounts for about 16% of Nike’s footwear imported into the United States, Matthew Friend, Nike’s chief financial officer, said during an earnings call on Thursday. The company wants to cut that figure to a “high single-digit percentage range” by May 2026, shifting production to other countries to offset rising tariff costs.
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- Nike is reducing its reliance on Chinese manufacturing for U.S. footwear imports, aiming to cut China's share from 16% to high single digits by May 2026 due to $1 billion in added tariffs.
- For fiscal 2025, Nike’s revenue fell 9% to $46.3 billion, and net income dropped 44% to $3.2 billion; sales declined across all major markets.
- Nike’s new “Win Now” strategy targets revamping branding, product lines, and sales focus in the U.S., Britain, and China, plus five key cities.
- Nike Inc.
- Nike Inc. is overhauling its supply chain to reduce reliance on Chinese manufacturing for U.S. footwear, aiming for a "high single-digit" share by May 2026 due to tariff pressures. While China remains vital, Nike aims to mitigate an estimated $1 billion in tariff expenses from the Trump administration. For fiscal 2025, revenue dropped 9%. CEO Elliott Hill introduced the "Win Now" strategy to revive performance, focusing on key markets and investing more in running shoes.
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