Nike has issued a warning that it could be compelled to increase the prices of its products if new tariffs proposed by former President Donald Trump are enacted. The company emphasizes that its supply chain is heavily reliant on overseas manufacturing, making it difficult to shift production to the United States.
The athletic apparel and footwear giant stated that the proposed tariffs would significantly raise costs across its imported product lines, leaving few options but to pass these costs on to consumers. Nike has long operated with a global manufacturing model that leverages cost-effective production outside the U.S., particularly in Asia.
Company representatives explained that while Nike supports American jobs and maintains significant business operations in the U.S., moving manufacturing stateside is not feasible at scale due to infrastructure and cost challenges. The tariffs, they argue, would not only impact Nike but also disrupt the broader supply chain and retail ecosystems.
This development comes amid broader discussions within the business community about the impact of protectionist trade policies on global operations and consumer pricing.
Nike has not specified the magnitude of potential price increases but is actively assessing how to mitigate the proposed tariffs’ effects should they be implemented.
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