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 (NYSE:NKE) on Thursday said it would cut its reliance on production in China to mitigate the impact of US tariffs on imports, and warned that President Donald Trump's sweeping levies on key trading partners could add around $1 billion to the company's costs.

Nike stocks soared Friday, despite a 12% revenue slump in the fourth quarter. CEO Elliott Hill told analysts Thursday he expects a better fiscal year ahead, albeit one that begins with a tariff-fueled cost increase estimated at $1 billion.