Foreign
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
The Leader of INRI Evangelical Spiritual Church, Primate Elijah Ayodele, has warned that the President of the United States of America, Donald Trump, may be stoned.
In a statement signed by his media aide, Osho Oluwatosin, Primate Ayodele noted that the president will face attacks in an Arab country and that some nations will gang up to cause chaos in America.
“Donald Trump may be attacked and stoned in an Arab country; he needs to be very careful, and I also see some nations coming together to cause chaos in the USA The president must be watchful about this.”
He made it known that the policies of the president will destroy America and that if he continues, things will not go well in the USA.
“The USA will not be the same again because of Trump’s policies. His administration needs to be careful to avoid things going otherwise in the country.
“Trump needs to do better to make the world a better place; otherwise, America will pay for the damages even after his administration”
Primate Ayodele urged Trump to do better before it’s too late, as he foresees some problems befalling the nation very soon
“Trump needs to adjust so many things before it’s too late. A problem is coming, and something will happen which won’t favour the USA. Trump needs to reorganise and look into many things to avoid putting America into jeopardy; if not, they will regret voting for him.”
South Sudan has started holding a trial for First Vice President Riek Machar, who has been sacked by his decades-long rival, President Salva Kiir, and charged with murder, treason and crimes against humanity in relation to rebellion and an attack by a militia linked with ethnic tensions.
Machar and seven others who have been charged alongside him, including Petroleum Minister Puot Kang Chol, were seen sitting inside a barred cage in the court on Monday during a live broadcast on national television.
Machar has been held in house arrest at his residence in the capital, Juba, for months following investigations by the government of his allies.
Earlier this month, a decree read on state radio said Kiir suspended the first vice president due to charges stemming from his alleged involvement in attacks by the White Army against federal forces in March.
The White Army, a loose band of armed youths, attacked a military base in Nasir, northeastern South Sudan, and killed more than 250 soldiers on Machar’s orders, according to the government.
Edmund Yakani, executive director of South Sudan activist group Community Empowerment for Progress Organization, told local media that the trial must be transparent and fair to build up trust in the judicial system.
He urged both leaders and their parties to “adhere to the principle of resolving political misunderstanding through dialogue” rather than violence, which would benefit no one.
Machar’s party, Sudan People’s Liberation Movement/Army-in Opposition (SPLM/IO), has called the charges “fabricated” and said its members were arrested illegally. Machar’s lawyer on Monday said “an incompetent court” that lacks jurisdiction is judging him.
Fears of a return to ruinous civil war
After the vice president’s arrest, the United Nations Mission in South Sudan (UNMISS) called on all parties to exercise restraint and warned that they risked losing the “hard-won gains of the past seven years” and returning to a state of civil war.
In 2013, two years after the country gained independence from Sudan following decades of war, oil-producing South Sudan descended into a civil war.
The devastating conflict, which scarred the country and left some 400,000 people killed, pitted Kiir and his allies from the ethnic Dinka group against Machar, who is from the Nuer, the second-largest ethnic group in South Sudan.
More than four million people, or about one-third of the population, were displaced from their homes before a 2018 peace deal saw the pair form a “national unity” government.
But they never fully saw eye-to-eye, leaving the country in a state of limbo.
Both leaders held on to their armed factions that were never fully integrated and unified despite agreements, while reforms were delayed, and presidential elections were repeatedly postponed.
Armed clashes have erupted in several parts of the country over the past months, with both sides accusing each other of breaking ceasefire agreements.
Authorities in South Sudan are, in the meantime, plundering billions of dollars in public funds as the impoverished country also deals with a deepening food crisis, according to the UN.
“The country has been captured by a predatory elite that has institutionalised the systematic looting of the nation’s wealth for private gain,” the UN Commission on Human Rights in South Sudan said last week.
South Sudan’s First Vice President Machar faces charges of treason and other serious crimes, local justice authorities said, as fears grow that the east African country could edge toward a return to civil war.
The United Nations body for human rights in South Sudan has called the government’s charges of treason against opposition leader Riek Machar “reckless.”
South Sudan’s First Vice President Machar faces charges of treason and other serious crimes, local justice authorities said Thursday, as fears grow that the east African country could edge toward a return to civil war.
Machar has been under house arrest since March after the transitional government he is a part of accused him of subversive activities against President Salva Kiir, who said Thursday that he was suspending Machar as his deputy because of the criminal allegations.
Pro-government troops have been fighting militias and other armed groups that they say are loyal to Machar, who has served as his country’s No. 2 under the terms of a delicate peace deal signed in 2018.
That agreement has not been fully implemented, with presidential elections repeatedly postponed.
In addition to treason, Machar and seven others face charges of murder, conspiracy, terrorism, destruction of public property and military assets and crimes against humanity.
The charges stem from a violent incident in March when a militia known as the White Army overran a garrison of government troops, killing its commanding officer and others. The justice ministry said in a statement Thursday that the attack in Nasir, Upper Nile state was influenced by Machar and others via ”coordinated military and political structures.”
Bringing criminal charges against Machar is likely to further destabilize South Sudan, whose government faces pressure from regional leaders to reach a political agreement that prevents a return to full-blown war.
It was not immediately clear when Machar would be presented in a courtroom. His precise whereabouts in South Sudan are unknown, and his political supporters have long called for his freedom.
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Tell Trump This: Primate Ayodele Sends Warning To Donald Trump In New Prophecy
