Dick's Sporting Goods announced on Thursday it intends to acquire Foot Locker to create a "global leader in the sports retail industry."

The announcement comes as President Donald Trump has implemented tariffs on imported goods, which are expected to have a profound impact on shoes and apparel. According to the U.S. International Trade Commission, over 96% of footwear in the U.S. is imported.

Nearly 42% of the shoes worn in the U.S. are from China. President Trump recently dropped the tariff rate he imposed on goods from China from 145% to 30% for 90 days to facilitate trade negotiations. He has also imposed a 10% tax on imports from other countries.

Nearly 31% of the shoes worn in the U.S. are made in Vietnam.

The deal to acquire Foot Locker is expected to cost Dick's Sporting Goods $2.4 billion. In return, the company is offering Foot Locker shareholders $24 or 0.1168 shares of Dick's Sporting Goods stock for each share of Foot Locker stock.

The agreement will be subject to regulatory approval.

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"We have long admired the cultural significance and brand equity that Foot Locker and its dedicated Stripers have built within the communities they serve," said Ed Stack, executive chairman of Dick's Sporting Goods. "We believe there is meaningful opportunity for growth ahead. By applying our operational expertise to this iconic business, we see a clear path to further unlocking growth and enhancing Foot Locker's position in the industry. Together, we will leverage the complementary strengths of both organizations to better serve the broad and evolving needs of global sports retail consumers."

Foot Locker has 2,400 locations in 26 countries, which also include Kids Foot Locker, Champs Sports, WSS, and Atmos stores. Dick's Sporting Goods has about 850 locations, which include Golf Galaxy, Public Lands, and Going, Going, Gone! stores.

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The companies say the merger will create a global platform within the growing sports retail industry, serve a broader set of consumers across differentiated concepts, strengthen relationships with brand partners through global reach, invest in future growth through an industry-leading omnichannel experience, and unlock operational efficiencies that create shareholder value.