Nike is shifting production away from China as it responds to rising U.S. tariffs and seeks to diversify its supply chain amid mounting trade uncertainty.
Nike is shifting its global supply chain away from China as part of a broader effort to manage rising costs and geopolitical uncertainty. The move comes as U.S. trade tariffs continue to pressure major importers.
During its Q4 FY25 earnings call, Nike confirmed plans to reduce its reliance on Chinese manufacturing for products destined for the U.S. market. The company cited recent U.S. tariffs initially introduced under President Donald Trump as a key driver of this shift.
Nike estimated these trade measures could add up to $1 billion (£730 million) to its operational costs in 2025. To mitigate the impact, executives said the brand will scale back its production footprint in China and diversify sourcing across other regions.
In May, Nike announced it would raise prices on select sneakers and apparel in the U.S. beginning in early June. This followed a similar move by rival Adidas, which had warned that higher import tariffs would force price adjustments.
Matthew Friend, Nike’s Executive Vice President and CFO, emphasized that the company has built a resilient and adaptive global supply chain over the last 50 years. He noted that Nike maintains strong partnerships with its manufacturing partners and that its leadership team is well-equipped to navigate operational challenges.
As of now, China accounts for 16% of Nike’s U.S.-bound footwear production. The company aims to reduce that figure to the high single digits by May 2026, according to executive updates.
On April 2, President Trump announced sweeping “Liberation Day” tariffs on imports from multiple countries. Later that month, his administration suspended most of those tariffs to allow time for negotiations, with a top adviser pledging “90 deals in 90 days.”
With the 90-day pause set to expire on July 9, the White House is under growing pressure to clarify the president’s next steps. Speaking at the White House last Thursday, Trump said trade talks were progressing, highlighting the agreement with China and suggesting another deal may be “coming up with India, maybe.”
He also noted that not every country would reach a trade deal with the United States.
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