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 said it would cut its reliance on production in China to mitigate the impact from U.S. tariffs on imports, and forecast a smaller-than-expected drop in first-quarter revenue, sending its shares up 11% in extended trading.

Nike plans to reduce China-made shoe imports to the US as tariffs rise; firm bets on running category rebound and price hikes to offset projected $1 billion cost from Trump's trade policies