Nike Inc. (NYSE:NKE) is navigating a period of sharp contrasts, celebrating a new partnership with Kim Kardashian's SKIMS while simultaneously bracing for a massive financial blow from escalating U.S. tariffs.

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Trump’s New Tariffs To Cost Nike $1.5 Billion

During its first-quarter fiscal 2026 earnings call on Tuesday, the shoemaker and sportwear giant revealed that the estimated annual cost of the tariffs has ballooned to $1.5 billion, casting a shadow over early signs of progress in its corporate turnaround.

The financial headwinds from the trade policy are significant, increasing 50% from a $1 billion estimate just 90 days ago.

Chief Financial Officer Matthew Friend told investors the new tariffs represent a major challenge. "We now estimate the gross incremental cost to NIKE on an annualized basis to be approximately $1.5 billion," Friend stated, adding that the company expects a net headwind of 120 basis points to its gross margin for the fiscal year as a result.

Kim Kardashian Lifts Nike’s Sportswear Portfolio

Despite the tariff pressure, Nike executives highlighted several strategic wins. The company's new performance training collaboration with SKIMS, which debuted with 58 silhouettes, is already a ...