Singapore’s leading Chinese-language newspaper Lianhe Zaobao recently reported that Nike’s Chief Financial Officer revealed during an earnings call that about 16 percent of the company’s footwear sold in the United States currently comes from China. Nike plans to reduce this share to single digits by May 2026 by shifting part of its production to other countries. Consumer goods, especially footwear, have been among the sectors hardest hit by the U.S.-China trade dispute. Nike estimates that tariffs could cost the company around $1 billion. However, analysts believe Nike is unlikely to lose significant market share in the U.S., as competitors may also face similar price pressures. Following the earnings call, Nike’s stock rose by 11 percent.
Meanwhile, the Hong Kong Economic Journal reported that GE Appliances plans to invest $490 million to relocate some of its washing machine production from China to the United States. The company will establish a new manufacturing base in Louisville, Kentucky, expected to begin operations in early 2027 and create 800 jobs. The Kentucky state government will provide up to $113.5 million in tax incentives for the project. GE Appliances noted that the relocation plan was considered even before Trump’s tariffs, but the trade policies accelerated the decision. The company also plans to upgrade its Georgia electric furnace to shift some production currently based in Mexico back to the U.S. GE Appliances is owned by China’s Haier Group.
Sources:
(1) Lianhe Zaobao, June 27, 2025
https://www.zaobao.com.sg/news/china/story20250627-6987826
(2) HKEJ, June 27, 2025
https://tinyurl.com/5djnjeu2