Nike's shares jumped at the opening bell Friday after the company said it's shifting some production away from China. But it also warned that tariffs imposed by the Trump administration will cost it about $1 billion before it makes internal changes, which include “surgical” price increases in the U.S. starting this fall.

Nike is taking action to combat a $1 billion cost increase from tariffs, including “a surgical price increase” in the U.S. starting this fall.

“These tariffs represent a new and meaningful cost headwind,” said Matthew Friend, Nike’s chief financial officer, via The Guardian. “With the new tariff rates in place today, we estimate a gross incremental cost increase to Nike of approximately $1 billion. We intend to fully mitigate the impact of these headwinds over time.”