Nike faces proposed US class action over tariff pricing
Plaintiffs allege the company raised prices on footwear and apparel to offset import duties, risking double recovery of funds once federal refunds are issued.
Nike is facing a proposed class action lawsuit filed in federal court in Portland, Oregon, alleging the company raised prices on footwear and apparel to offset import tariffs imposed by former President Donald Trump. Although the US Supreme Court invalidated these tariffs in February, plaintiffs argue that Nike has not committed to returning the overcharges to consumers. The complaint contends that the sportswear giant could recover tariff payments twice: once from consumers via higher prices and again from the federal government through refunds.
According to the plaintiffs, the company raised prices on some footwear by $5 to $10 and on certain apparel lines by $2 to $10 to offset those costs. Nike has disclosed it paid around $1bn in tariffs on imported goods linked to the measures, which were imposed under the International Emergency Economic Powers Act. With the tariffs now overturned, consumers argue that money should go back to shoppers rather than being retained by the company.
The lawsuit states that Nike has made no legally binding commitment to return tariff-related overcharges to the consumers who actually paid them. Unless restrained by the court, the complaint argues the company stands to recover the same tariff payments twice. This legal challenge adds to a series of comparable consumer cases filed against other firms, including Costco and EssilorLuxottica, in relation to tariff-linked price changes.
Nike is currently dealing with other legal and regulatory matters alongside this pricing dispute. In February, US regulators asked a court to order the company to provide documents connected to alleged discrimination against White employees. The Equal Employment Opportunity Commission said it was examining allegations that the company carried out systemic bias through its hiring practices and diversity, equity and inclusion initiatives.
Separately, Nike announced last month it would cut 1,400 jobs across its global workforce as part of efforts to streamline operations during an extended period of weak sales. Equating to just under 2% of the company's total headcount, the cuts are expected to affect mainly technology roles across North America, Asia and Europe.
The information regarding this lawsuit was originally reported by Retail Insight Network, a GlobalData owned brand. The details presented here reflect the allegations within the filed complaint and public disclosures made by the company regarding tariff payments.
