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 expects U.S. tariffs on imports to add around $1 billion to its costs, the sportswear giant said on Thursday, detailing how it aims to reduce its reliance on production in China and mitigate the impact.

Nike warned on its post-earnings call that if President Donald Trump’s tariff policies were to remain at their current level, they could cost the company nearly $1 billion.