Nike sued by consumers for not refunding tariff costs

FILE PHOTO: Nike shoes are seen in the King of Prussia Mall, as global markets brace for a hit to trade and growth caused by US President Donald Trump's decision to impose import tariffs on dozens of countries, in King of Prussia, Pennsylvania, US, Apr 3, 2025. REUTERS

Nike was sued on Friday by consumers who accused the athletic apparel and footwear maker of not refunding tariff-related costs it passed on in the form of higher prices.

In a proposed class action, consumers said Nike should not be allowed to keep "significant" refunds it can expect after the U.S. Supreme Court in February struck down sweeping tariffs that President Donald Trump imposed under the International Emergency Economic Powers Act.

The Beaverton, Oregon-based company has said it paid about $1 billion in tariffs on imported goods as a result of Trump's actions. Consumers said Nike raised prices on some footwear by $5 to $10 and some apparel by $2 to $10 to offset the costs.

"Nike has made no legally binding commitment to return tariff-related overcharges to the consumers who actually paid them," the complaint said.

"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 did not immediately respond to requests for comment.

It joins a variety of companies including Costco and Ray-Ban sunglasses maker EssilorLuxottica that have been sued by consumers for allegedly failing to pass on tariff refunds to consumers.

The Nike lawsuit was filed in the Portland, Oregon, federal court.

In a March 31 conference call, Nike said its fiscal quarter ending in August 2026 would likely be the final quarter when tariffs are a material year-over-year headwind to gross margin.