Will Trump-era tariffs make your next pair of Nikes more expensive?

Global sportswear giant Nike is reportedly bracing for a $1 billion blow from US tariffs on Chinese-made imports, a cost surge it admits will be passed, at least partly, onto customers. The warning this week came as the company unveiled an aggressive turnaround plan: cutting reliance on Chinese factories, refocusing on core sports lines, and clearing bloated inventories.

But for sneaker lovers, it means one thing: prices are likely to rise. According to Reuters, Nike told investors that US tariffs have become a “meaningful cost headwind” that will require supply-chain overhauls and selective price increases to protect margins.

Why are the tariffs hitting so hard?

Nike’s warning comes hot on the heels of an important policy decision. In April 2025, the Trump administration completed its required four-year review of the Section 301 tariffs and chose to keep nearly all of them in place indefinitely. As per the Office of the US Trade Representative (USTR) and Reuters reporting, this means the 25 per cent duty on many categories of Chinese-made footwear and apparel remains locked in. This decision ended industry hopes of tariff relief, confirming that brands will continue to pay more to import Chinese-made goods.

Nike’s leadership admitted that without any rollback, the company’s tariff burden will stay close to $1 billion over the coming years. “These tariffs aren’t going away,” GlobalData’s Neil Saunders told Reuters. “Brands will either absorb the cost, lower margins, or pass it onto consumers.”

What it means for buyers

For consumers, these changes won’t be invisible. Nike’s CFO Matthew Friend told investors the company plans to “fully mitigate” the extra $1 billion cost. But much of that will come through price increases on popular models.

Industry analysts say premium lines like Air Jordan, Dunk, and Air Force 1, which often retail for $100–$200, could see further price hikes, especially for limited editions. Resale markets could also feel the pinch. Higher retail prices often drive up secondary market costs for coveted releases, making sneaker culture even pricier. According to StockX data cited by Reuters and Bloomberg, average resale prices for some Jordan retros and collabs rose 15–20 per cent in 2023 alone as demand outpaced supply.

Inventory purge and supply realignment

Nike’s earnings call this week revealed other headaches: North American sales down, China sales down over 20 per cent, and excess inventory in lifestyle lines. Nike has been discounting heavily to clear stock of Air Force 1s and Dunks, with analysts noting that it’s aiming for a “clean” inventory position by the first half of fiscal 2026.

Reuters reported that CEO Elliott Hill’s strategy is to “rightsize” these iconic franchises while doubling down on core sports performance, like running, basketball, and football boots.

The broader sneaker market impact

Nike’s sourcing pivot reflects an industry-wide retreat from China. According to the Footwear Distributors and Retailers of America (FDRA), US brands have reduced China’s share of footwear imports from 70 per cent in 2010 to under 50 per cent in 2023.

Vietnam now accounts for over 30 per cent of US imports, while Indonesia has also surged. But production costs in these alternative hubs are rising too. As per FDRA analysis, average landed costs per pair have increased 5–10 per cent over the past two years in Vietnam and Indonesia, meaning savings aren’t guaranteed.

For buyers, this means brands will struggle to keep prices stable, especially for classic models that rely on familiar supply chains and materials.

A fragile recovery

Despite the challenges, investors cheered Nike’s turnaround plan. Shares jumped over 13 per cent on Friday, their best one-day rally in years. Analysts praised Hill’s renewed focus on athletes and sports performance. The company also confirmed it’s returning to a multi-channel sales approach, including selling on Amazon again after a six-year break.

Reuters noted that at least 11 brokerages upgraded their price targets for Nike stock, with HSBC moving to a “buy” rating. But the underlying message was clear: Trump-era tariffs are here to stay, and big brands will pass on the costs.

“For sneaker lovers, it’s a warning that the days of cheap, China-made Jordans flooding US shelves are fading fast,” said Neil Saunders, managing director at GlobalData, as quoted by Reuters.

The road ahead

Nike’s bet is that even with higher prices, loyal buyers will pay for quality, brand heritage, and innovative performance. Company filings show Nike still commands over 25 per cent of the global sportswear market, far ahead of rivals Adidas and Puma.

But as tariffs linger and supply chains shift, one thing is certain: the cost of being a sneakerhead may keep climbing.

(With inputs from the agencies)