Nike's costs will go up $1bn (£728m) this year if US President Donald Trump's tariffs remain at the current level, the company has told investors.
It follows a warning from the sports brand last month that it would raise prices due to the taxes imposed on imports.
Work to bring down costs is under way, including reducing supplies from China to the US.
It's to reduce the amount of footwear made in China and imported to the US from 16% currently to a "high single digit" figure with Chinese supply being "reallocated to other countries around the world".
Money blog: Passengers could be allowed two free bags on planes
On 2 April, Mr Trump announced country-specific tariffs which hit China hardest and escalated after several rounds of retaliatory rises.
After an agreement between Washington and Beijing the levy was brought down from a 145% tariff to 30% on Chinese goods.
Price rises for consumers will start to come into effect in the autumn.
The latest warning on tariffs comes as Nike reported the worst quarterly results in more than three years.
Revenues were $11.1bn (£8.1bn) - the lowest since the third quarter of 2022.
It has been dealing with the after-effects of an unsuccessful move to sell direct-to-consumer with Wall Street analysts also critical of its dependence on lifestyle products and reliance on fashion trends.
Nike chief executive Elliott Hill had returned from retirement last year to again take the top job at the company.
The worst of the trade wars have already occurred, Mr Hill said, with "the headwinds to moderate from here".
(c) Sky News 2025: Nike says Trump tariffs could cost it $1bn
New Look lines up bankers to fashion high street exit
Post Office: Police identify seven suspects related to Horizon scandal
Trade war: UK car exports to US halved in May ahead of truce
RTL Group to buy Sky Deutschland
Sky News Business Podcast: Welfare reforms, bond markets and skills
Crisis-hit marketing group Next 15 approached about £200m break-up
VIvergo bioethanol plant to close 'due to UK-US trade agreement'
Fresh drive to fix shortfalls in UK's economic statistics
