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.”