Nike has become one of the latest victims of Donald Trump’s tariffs. The US president announced additional 10% tariffs on all Chinese imports in March. With this trade war, the Trump administration has directly affected US consumers. For Nike, this means losses not only in sales but also in production, as most of its products are manufactured in China. Around 36% of Nike’s products are made in China, so Donald Trump’s tariffs will have an immediate impact on the sportswear giant.
China responded by imposing even harsher measures
Now, Nike plans to minimize its dependence on factories in China in order to reduce the inflation costs generated by tariffs. After Trump’s tariff announcement, China responded by imposing even harsher measures, with tariffs on US imports increasing to 34%, 84%, and then 125%. These tariffs have fluctuated and retreated over the past four months, but the trade war continues to rage.
Prices at the sneaker giant will begin to rise by fall 2025
What is a fact is that Air Force prices are going to rise. Consumers who want to buy new sneakers will have to pay more for the same shoes. This is something Americans have already been noticing since Donald Trump’s tariff war began. Prices at the sneaker giant will begin to rise by fall 2025.
Despite the decline, CEO Elliott Hill remained optimistic about his recovery plans, stating that it’s “time to turn the page.” Nike plans to “aggressively adjust three very important franchises,” including the Air Force 1, the Dunk, and the Air Jordan, según recoge CNN.
Donald Trump: “Maybe the children will have two dolls instead of 30 dolls”
Regarding this issue, Donald Trump said this in April of this year: “Maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple of dollars more than they normally would.” This was how the US president defended himself in response to questions about the now-famous tariffs. The political situation since Donald Trump took office has gone from one extreme to another in the blink of an eye.
Elon Musk has called for the creation of a new political party
Let’s remember that one of the Trump administration’s main emblems was Elon Musk’s economic power and his alliance with the billionaire. Now, almost six months later, the tycoon has distanced himself from Trump, becoming a new target for the US president. In recent statements, Trump has even said of Musk that he “would probably have to close up shop and go home to South Africa,” in reference to the tariffs affecting Elon Musk’s company. For his part, the billionaire has called for the creation of a new political party on social media in response to his anger with Trump.
“These tariffs represent a significant new cost burden. With the new tariffs in effect today, we estimate a gross cost increase for Nike of approximately $1 billion,” said Matt Friend, Nike’s chief financial officer. “Nike has consistently been a major contributor to US tariffs. We will optimize our supply mix and allocate production differentially across countries to mitigate the new cost burden in the United States.”
Nike es una de las empresas más importantes del mundo y por serlo, ha superado ya crisis de las que ha aprendido. Por eso, dentro del gigante se muestran optimistas de cara a enfrentar este reto que implicará cambios y ajustes en costos, producción y plantilla.
