Nike to increase prices on some trainers and apparel from early June. This decision further underscores the rising trade storm brewing between the United States and China. This decision follows President Donald Trump’s recent tariffs that have significantly affected trade dynamics, with implications for both American consumers and global supply chains.
As President Trump outlandishly and inaccurately claimed a few days ago, he didn’t “sign” a deal with China. He offered no specifics about what that deal would include. The news came on the heels of the Trump administration’s recent hike on tariffs. These new rates have hit a big cross-section of goods. In a tit-for-tat, China responded in kind in April with their own tariffs. This heavy-handed move came close to completely freezing trade between the two budding economic heavyweights.
Against this backdrop, Trump has indicated through his visits that he will go country to country with offers of new, high-profile tariff rate agreements. His administration suspended most tariffs temporarily to help usher in more productive conversations with affected nations. On April 2, he followed through on his promise and announced tariffs. He dubbed them “Liberation Day” tariffs, and they apply to thousands of products imported from dozens of countries. Originally at rate levels many times higher, the tariffs were eventually lowered down to 10%.
Nike’s response to these specific tariffs has been surprising, in that it has been positive and proactive. As it stands, the country produces 16% of its footwear in China. It’s now looking to move some of that production overseas. The realignment is intended to lessen the burden of harmful U.S. trade policies. By the end of May 2026, Nike intends to cut its reliance on Chinese manufacturing to a “high single-digit percentage range.”
The ramifications of these tariffs cut deeper than just the fortune amassed by Nike. Adidas has warned that it may need to raise the cost of its products due to similar pressures from U.S. tariffs. Implementing tariffs as high as 25%, 35% and even 45% on certain items. Consequently, businesses are suffering tremendous economic stress.
This means they need to discover how to minimize the harmful effects of these tariffs. His chief trade adviser promised that they would pursue “90 deals in 90 days” to combat mercantilism. Trump himself remarked, “We’re not going to make deals with everybody,” highlighting a more selective approach to negotiations.
Nike’s pricing moves are a major bellwether for the retail industry. This is hitting thousands of companies hard as costs have all been increased due to tariffs. The 90-day pause on tariffs expires July 9, adding a dose of urgency for affected businesses. They should be able to easily modify their tactics on the fly to account for possible upticks.
As corporate giants such as Nike begin to make decisions within these choppy currents, the ultimate impact of the current tariffs is still unknown. The trade relationship between the U.S. and China is still in flux and many players on all sides are continuing to watch the situation closely.