Trade ache, stock acquire: Nike shares jump 15% as it shifts production from China; braces for $1 bn tariff blow, price hikes ahead

Nike shares surged 15% on the opening bell Friday after the corporate introduced a shift in production away from China, even as it warned that tariffs imposed by the Trump administration will price it about $1 billion (roughly Rs 8,300 crore) earlier than inside changes take impact.The US sportswear big stated it will start implementing “surgical” price will increase within the US beginning this fall, a transfer that would have an effect on back-to-school consumers. Walmart had earlier warned of comparable seasonal price hikes because of tariffs, AP reported.Nike stated about 16% of the footwear it imports into the US is at the moment made in China, a determine it plans to scale back to the high-single-digit vary by the tip of fiscal 2026. “Production will be shifted elsewhere to avert looming tariffs,” CFO Matthew Friend instructed analysts throughout a Thursday convention name.The announcement got here as President Donald Trump and Commerce Secretary Howard Lutnick confirmed that the US and China have signed a commerce settlement, although they supplied no particulars. China’s Commerce Ministry additionally issued an announcement confirming “further confirmation of framework details” within the commerce talks however didn’t point out US entry to uncommon earth exports—one other sticking level in current negotiations.Nike, Adidas, Under Armour, and Puma had been amongst 76 firms that had petitioned the Trump administration earlier for an exemption on footwear tariffs, warning that new duties would have a serious influence “at the cash register for every family,” the AP report stated.Nike reported a quarterly revenue of $211 million, or 14 cents per share, with income totalling $11.1 billion, barely ahead of Wall Street expectations.But analysts warn the corporate nonetheless faces challenges. “While it’s still the most significant brand in sportswear, a boredom factor seems to have settled over the Nike brand,” wrote Neil Saunders, Managing Director at GlobalData, citing weaker progress in China and rising anti-US sentiment.“Nike is already facing a pullback in spending by Americans, who have grown anxious about the direction of the US economy,” AP famous. The firm’s back-to-school price technique, mixed with lowered reliance on Chinese manufacturing, goals to mitigate the anticipated influence of tariffs whereas shoring up its core market presence.