Trump tariffs will cost Nike $1 billion MHM NEWS

MHM NEWS

Trump tariffs will cost Nike $1 billion

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00:00The world's leading sportswear manufacturer, Nike, has stated that tariffs imposed by U.S.

00:12President Donald Trump on major trading partners could result in an additional cost of nearly

00:17$1 billion, 730 million pounds. This year, top company officials also said they would reduce

00:24their reliance on production in China to mitigate the impact of U.S. trade policies.

00:30Dear viewers, if you like this news, please like it and share your comments in the comment box.

00:35Last month, Nike announced that they would raise prices for some shoes and apparel in the U.S.

00:40starting in June. A few weeks prior, their competitor Adidas had also said that tariffs

00:45would necessitate price increases. Nike's share price surged over 10% in after-hours trading

00:51after the company forecast a smaller-than-expected decline in its first-quarter revenue.

00:56Although it was their worst quarter in the past three years, the company's earnings in the last

01:01three months surpassed analysts' forecasts. Nike reported that its fourth-quarter revenue was

01:06$11.1 billion, the lowest since the third quarter of 2022.

01:12Matthew Friend, Nike's chief financial officer, stated that in response to Trump's tariff policies,

01:17they have decided to relocate some production operations from China to other countries.

01:22This is because China has been most severely affected by Trump's tariffs.

01:35Shoes sold in the U.S. are

01:37Made in China.

01:41However, Matthew Friend says this number will be reduced to high single digits by May 2026.

01:47On April 2, U.S. President Donald Trump declared Liberation Day and imposed widespread tariffs

01:54on most goods globally. However, later in the month, he temporarily suspended most tariffs to

02:00allow for negotiations with affected countries. One of his top advisors then announced that the

02:05Trump administration had set a goal of making 90 deals in 90 days. This move significantly reduced

02:12tariff rates to 10%, whereas much higher rates were previously applicable to products from many

02:18trading partners. However, pressure is now mounting on the White House. These 90 days are set

02:23to expire on July 9. World trade partners are concerned whether Trump will become even stricter

02:29with these tariffs or if tariffs will be further reduced. Yesterday, Thursday, in a speech at the White

02:35House, President Trump mentioned a deal with China. He stated that trade talks are progressing well.

02:41A deal with India could also be made. However, he warned, we will not make deals with all

02:48countries. We will just send a letter to some countries saying, thank you. You have to pay 25,

02:5335, 45% tariffs. This is the easiest way. Trump also added, my team doesn't want to do it this way.

03:01They want to do something, but they are more interested in deals than I am. Later, Commerce Secretary Howard.

03:07Ludnick told Bloomberg that the deal with China is essentially a formalization of previous

03:14discussions. This includes Beijing's commitment to supply rare minerals. However, Treasury Secretary

03:20Scott Besant had previously indicated that Trump might extend the 90-day deadline depending on the

03:27progress of the negotiations. Yesterday, White House spokesperson Carolyn Levitt said that this

03:32deadline is not significant. President Trump is ready to discuss various types of deals with

03:38different countries regarding new tariff rates. Earlier this month, the U.S. and China announced

03:43a deal on rare-earth mineral supplies. This sparked concerns that a disruption in these mineral supplies

03:49could restart trade tensions between the two economic superpowers. Yesterday, Trump spoke about signing a

03:55deal with China but did not provide details. Later, a White House official said that the administration

04:01and China have reached an additional understanding, which will establish the framework for implementing

04:06the Geneva Agreement. Earlier, in April, after Trump increased tariffs, China retaliated with tariffs,

04:13effectively halting trade between the two countries. Later, both countries agreed to reduce

04:20some tariffs, but tariffs were not completely abolished.

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