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Nike To Hike Prices Amid Trump’s China Tariffs

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Nike To Hike Prices Amid Trump's China Tariffs

Nike joins companies like Walmart, Target and Mattel that have said they will need to raise prices.

Nike has said it will cut its reliance on production in China for the United States market to mitigate the impact from US tariffs on imports, and forecast a smaller-than-expected drop in first-quarter revenue.

The sportswear giant’s shares zoomed 15 percent at the opening bell on Friday morning after it announced the change in conjunction with its earnings report released on Thursday.

US President Donald Trump’s sweeping tariffs on imports from key trading partners could add about $1bn to Nike’s costs, company executives said on a post-earnings call after the sportswear giant topped estimates for fourth-quarter results.

China, subject to the biggest tariff increases imposed by Trump, accounts for about 16 percent of the shoes Nike imports into the US, Chief Financial Officer Matthew Friend said. However, the company aims to cut the figure to a “high single-digit percentage range” by the end of May 2026 as it reallocates Chinese production to other countries.

“We will optimise our sourcing mix and allocate production differently across countries to mitigate the new cost headwind into the United States,” he said on a call with investors.

Consumer goods are one of the most affected areas by the tariff dispute between the world’s two largest economies, but Nike’s executives said they were focused on cutting the financial pain. Nike will “evaluate” corporate cost reductions to deal with the tariff impact, Friend said. The company has already announced price increases for some products in the US.

“The tariff impact is significant. However, I expect others in the sportswear industry will also raise prices, so Nike may not lose much share in the US,” David Swartz, analyst at Morningstar Research, told the Reuters news agency.

CEO Elliott Hill’s strategy to focus product innovation and marketing around sports is beginning to show some fruit, with the running category returning to growth in the fourth quarter after several quarters of weakness.

Having lost share in the fast-growing running market, Nike has invested heavily in running shoes such as Pegasus and Vomero, while scaling back production of sneakers such as the Air Force 1.

“Running has performed especially strongly for Nike,” said Citi analyst Monique Pollard, adding that new running shoes and sportswear products are expected to offset the declines in Nike’s classic sneaker franchises at wholesale partner stores.

Marketing spending was up 15 percent year on year in the quarter.

On Thursday, Nike hosted an event in which its sponsored athlete Faith Kipyegon attempted to run a mile in under four minutes. Paced by other star athletes in the glitzy event that was livestreamed from a Paris stadium, Kipyegon fell short of the goal but set a new unofficial record.

Nike forecast first-quarter revenue to fall in the mid-single digits, slightly better than analysts’ expectations of a 7.3 percent drop, according to data compiled by LSEG. Its fourth-quarter sales fell 12 percent to $11.10bn, but still beat estimates of a 14.9 percent drop to $10.72bn.

China continued to be a pain point, with executives saying a turnaround in the country will take time as Nike contends with tougher economic conditions and competition.

Looming trade deal as prices rise
Nike’s woes come as a trade deal with China could be on the horizon. US Treasury Secretary Scott Bessett said on Friday that the administration could have a deal with Beijing by Labor Day, which is on September 1.

Under the deal, the US will likely impose 55 percent tariffs across the board on Chinese goods, down from 145 percent, still a significant burden on businesses.

o a survey from Allianz Global Trade last month, 38 percent of businesses say they will need to raise prices for consumers, with Nike being the latest.

In April, competitor Adidas said it would need to eventually raise prices for US consumers.

“Cost increases due to higher tariffs will eventually cause price increases,” CEO Bjorn Gulden said at the time.

Walmart said last month that its customers will see higher price tags in its stores as the nation’s biggest big box retailer prepares for back to school shopping season.

Target, which had a bad first quarter driven by boycotts and the looming threat of tariffs, also has been hit as the big box retailer gets 30 percent of its goods from China.

Aljazeera.com

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Benin Republic Lawmakers Approve Seven-Year Presidential Term

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The National Assembly of Bénin (National Assembly Benin) has approved a revision of the country’s Constitution, extending the presidential term from five to seven years and creating a bicameral parliament.

In a post shared on Facebook on Saturday by the Assemblée Nationale du Bénin, lawmakers announced that the bill was passed during a plenary session held on Friday at the Palace of the Governors in Porto-Novo.

According to the Assembly, 90 deputies voted in favour and 19 against, approving the amendment to the Constitution of 11 December 1990, previously revised in 2019.

“The Deputies of the 9th Legislature… adopted by 90 votes for and 19 against, the law modifying the Constitution of the Republic of Bénin,” the statement read.

The legislative body added that, in line with Article 154, the proposal first had to secure the required three-quarters majority during a preliminary vote. Deputies met this threshold with 87 votes for and 22 against, before proceeding to the final secret ballot.

The post, originally published in French, has been translated by PUNCH Online using Google Translate.

According to the Assembly’s breakdown, 15 new articles were created and 18 amended.

One of the most significant changes is contained in the newly modified Article 42, which now states: “The President of the Republic is elected by direct universal suffrage for a term of seven years, renewable only once. No one may, in his or her lifetime, serve more than two terms as President of the Republic.”

The reform also introduces a bicameral legislature, as stipulated in the updated Article 79, giving legislative powers and government oversight to both the National Assembly and a newly established Senate.

“Beyond this major change, Parliament—under the amended Article 79—exercises legislative power and oversees government action. It is now composed of two chambers: the National Assembly and the Senate.”

Under Article 80, deputies’ terms are now set at seven years, renewable, with an additional clause stating that any deputy who resigns from the party that sponsored them during legislative elections will automatically lose their mandate.

“The term of office for deputies is 7 years, renewable. Any deputy who resigns and thereby ceases to be a member of the party that sponsored them for the legislative election loses their mandate.”

The reformed Article 113.1 defines the Senate as an institution responsible for regulating political life and safeguarding “national unity, development, territorial defence, public security, democracy, and peace.”

The law also extends the tenure of mayors and municipal councillors to seven years, renewable.

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Prisoner Exchange: Tinubu Sends Delegation To UK Over Ekweremadu’s 9-Year Jail Term

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The Federal Government has opened discussions with the United Kingdom (UK) over the possible transfer of former Deputy Senate President, Senator Ike Ekweremadu, who is currently serving a nine-year sentence in a UK prison for organ harvesting.

The Daily Voice understands that a high-powered Nigerian delegation arrived in London on Monday to engage British authorities on the matter.

The delegation included the Minister of Foreign Affairs, Yusuf Maitama Tuggar, and the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi.

Both officials held a closed-door meeting with senior representatives of the UK Ministry of Justice.

After the meeting, the officials were received by Ambassador Mohammed Maidugu, Acting High Commissioner to the United Kingdom, at the Nigerian High Commission in London.

Diplomatic sources told Daily Trust that the visit is part of President Bola Tinubu’s effort to secure either an early release or a lawful review of Ekweremadu’s sentence based on humanitarian considerations.

Officials familiar with the negotiation confirmed that the Nigerian government is exploring different legal avenues under UK law, including prisoner-transfer agreements, compassionate parole, or more lenient relief options.

We are working on an appeal for a prisoner exchange for him to serve the remainder of his term in Nigeria,” a top Ministry of Foreign Affairs official disclosed.

“Consultations are still ongoing with the UK authorities.”

The Daily Voice reports that Ekweremadu, a long-serving legislator and three-time Deputy President of the Senate, was convicted at the Old Bailey in March 2023 alongside his wife, Beatrice, and a medical doctor, Obinna Obeta.

They were found guilty of conspiring to exploit a young Nigerian, David Nwamini, for the removal of his kidney to treat Ekweremadu’s daughter, Sonia.

The former senator was sentenced to nine years and eight months in a UK correctional facility — the longest sentence ever handed down in the UK for an organ-harvesting-related offence.

The latest diplomatic push signals renewed efforts by the Nigerian government to renegotiate the terms of Ekweremadu’s imprisonment, even as officials tread carefully to respect UK judicial processes.

The Federal Government is expected to update the public as consultations with UK authorities continue.

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Revoked US Visa: Shehu Sani Tells Nigerians What To Do

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Former Kaduna Central Senator, Shehu Sani, has urged Nigerians and other Africans affected by the recent mass visa revocation in the United States to return home before facing possible arrest by US Immigration and Customs Enforcement.

In a post on his X (Twitter) handle on Monday, Sani said no matter how long one stays abroad, they’ll be reminded it’s not their home.

He wrote, “Nigerians and other thousands of Africans whose visas were recently revoked by President Trump should hasten and leave the country and return home before they get arrested by ICE.

“No matter how long you live in the comfort of your adopted home, you will someday be reminded that it’s not your father’s house.”

The advisory comes in the wake of reports that the US State Department has revoked at least 80,000 visas since January 2025 under President Donald Trump’s administration, more than twice the number recorded in the previous year.

According to a report released last Thursday, the US Department said the revoked visas include 16,000 linked to driving under the influence, 12,000 for assault, and 8,000 student visas.

It also listed other reasons for the revocations, including terrorist support, criminal activity, public safety threats, overstays, and actual terrorism.

The advisory comes in the wake of reports that the US State Department has revoked at least 80,000 visas since January 2025 under President Donald Trump’s administration, more than twice the number recorded in the previous year.

According to a report released last Thursday, the US Department said the revoked visas include 16,000 linked to driving under the influence, 12,000 for assault, and 8,000 student visas.

It also listed other reasons for the revocations, including terrorist support, criminal activity, public safety threats, overstays, and actual terrorism.

While the nationalities of the affected visa holders were not disclosed, the department had earlier stated in August that over 6,000 student visas were withdrawn for overstays and legal violations, including a small number connected to “support for terrorism.”

The US has also tightened its visa regulations in recent months.

In July, the US Embassy directed all applicants for F, M, and J non-immigrant visas to set their social media accounts to public as part of enhanced background checks.

That same month, it also announced a major policy change affecting Nigerian applicants, which included a reduction in the validity period for several categories of visas.

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