Nike soars on a production shift away from China

Nike shares surged 15% Friday after the company announced plans to shift production away from China to reduce exposure to U.S. tariffs, which are expected to cost the company $1 billion. Starting this fall, Nike will implement targeted price increases in the U.S. to offset the impact. The company said it will reduce China-based production from 16% to single digits by 2026, the Associated Press has reported. Despite reporting better-than-expected earnings, Nike faces slowing consumer spending and rising economic uncertainty, along with brand fatigue and growing anti-U.S. sentiment in China.