Nike says that increased costs brought on by Trump administration tariffs could cost the company roughly $1 billion, as the sportswear giant faces what chief financial officer Matthew Friend is calling "a new and meaningful cost headwind." 

According to The Guardian, Friend told analysts on a June 27 call that the company is hoping to mitigate the added costs from tariffs by reducing its reliance on sourcing from China, and by raising prices for its consumers. China accounts for around 16% of all footwear Nike imports into the U.S., with the company aiming to cut that number to single digits by the end of the 2026 fiscal year. So-called "surgical price increases" on certain products are expected to begin this fall. 

Read More: Tariff Turmoil Threatens to Bring 'Summer of Discontent'

Nike reported its worst quarterly earnings in three years in Q2, with revenues dipping by 12% to $11.1 billion. In a May report from factory tour facilitator Plant Tours, more than half of the 500 manufacturing professionals surveyed said that tariffs have cut their profit margins by as much as 15%, with 75% passing related cost increases along to customers. A separate survey of 1,000 U.S. shoppers from e-commerce platform k-ecommerce found that 44% of consumers have reduced their overall spending, while 36% have delayed purchasing non-essential items.