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.