Nike faces proposed US class action over tariff pricing – report

Nike is facing a proposed US class action alleging it raised prices to cover tariff costs and has not committed to returning those funds after the tariffs were struck down.

The case was filed in federal court in Portland, Oregon, and concerns import tariffs imposed by US President Donald Trump under the International Emergency Economic Powers Act.

In February, the US Supreme Court invalidated the tariffs.

Reuters reported that Nike disclosed it paid around $1bn in tariffs on imported goods linked to those measures.

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.

With the tariffs now overturned, consumers argue Nike is due refunds from the federal government and say that money should go back to shoppers instead of being kept by the company.

The complaint states: “Nike has made no legally binding commitment to return tariff-related overcharges to the consumers who actually paid them.

“Unless restrained by this court, Nike stands to recover the same tariff payments twice – once from consumers through higher prices and again from the federal government through tariff refunds.”

Nike is one of several companies facing comparable consumer cases, alongside Costco and Ray-Ban sunglasses maker EssilorLuxottica, in relation to tariff-linked price changes.

The lawsuit comes as Nike is also dealing with other legal and regulatory matters.

In February, US regulators asked a court to order Nike 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 said 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.

"Nike faces proposed US class action over tariff pricing – report" was originally created and published by Retail Insight Network, a GlobalData owned brand.

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