Nike is set to raise prices on some trainers and clothing in the US from early June, weeks after rival Adidas warned it would have to hike the cost of products due to tariffs.
Almost all of Nike’s goods are made in Asia – a region targeted by President Donald Trump’s tariffs.
From Sunday, 1 June, most Nike shoes that cost more than $100 (£74.50) will see prices rise by as much as $10.
On Wednesday, UK sportswear retailer JD Sports said higher prices in its key US market due to tariffs could hit customer demand.
Vietnam is by far the biggest manufacturer of Nike goods.
A few weeks after rival Adidas warned that it would have to increase product prices due to tariffs, Nike is planning to raise the price of some sneakers and apparel in the US starting in early June.
Despite claiming that it frequently made “price adjustments,” the sportswear giant did not specifically attribute the increase to US tariffs.
President Donald Trump’s tariffs target the Asian market, where nearly all of Nike’s products are manufactured.
Higher so-called “reciprocal” tariffs have been put on hold by the US until July, but a 10-percent “base” levy is still applied to a number of nations.
Almost always, the company importing the goods into a country pays the tariffs, not the company producing the goods.
Importers have the option to pass the additional tax on to the customer or absorb it themselves.
The prices of the majority of Nike shoes that cost more than $100 (£74–£50) will increase by up to $10 starting on Sunday, June 1.
Additionally, there will be a $2–$10 increase in the price of apparel and equipment.
Nike commented on the price increases, saying: “As part of our seasonal planning, we regularly assess our business and make pricing adjustments. “,”.
The company was “navigating through several external factors that create uncertainty in the current operating environment,” including tariffs, according to Nike’s finance chief Matt Friend, who spoke with investors in March.
Nike was keeping an eye on “the impact of this uncertainty and other macro factors on consumer confidence,” he added.
The price increases won’t apply to Nike’s well-known Air Force 1 sneakers or shoes under $100. Jordan-branded clothing and accessories, as well as items for children, will not be included.
Adidas stated last month that Trump’s levies would raise the cost of well-known sneakers like the Gazelle and Samba in the US.
JD Sports, a UK sportswear retailer, warned on Wednesday that tariff-related price increases in its major US market could reduce consumer demand.
The uncertainty of the Trump administration’s trade policies is posing a challenge to businesses worldwide.
Several high “reciprocal” tariffs that were announced on April 2nd were halted while nations from all over the world engaged in negotiations with the White House.
Some of the highest import taxes in the US, ranging from 32 to 54 percent, will be applied to goods from China, Vietnam, Indonesia, and Thailand—all of which produce shoes for American corporations.
Despite the 90-day pause ending in early July, the base 10 percent tariff is still in effect.
The largest Nike product manufacturer is by far Vietnam. According to the company, 26 percent of its apparel and 50 percent of its footwear were made in Vietnamese factories during the most recent fiscal year.
Nike products are also produced by companies in China, Indonesia, and Cambodia.
Vietnam relies heavily on manufacturing for foreign companies, and Trump imposed one of the highest reciprocal tariffs on the nation—46 percent.
The US president’s son, Eric, is traveling to Vietnam this week, just days after the Vietnamese government authorized a plan by the Trump Organization and local company Kinh Bac City Development to invest $1.05 billion in luxury real estate, hotels, and golf courses.
In Ho Chi Minh City, the Trump Organization is also looking for potential sites for a Trump Tower.
Additionally, Nike announced that, for the first time since 2019, it would sell goods directly to Amazon in the US.
In accordance with a plan put in place by its then-CEO John Donahoe, Nike ceased listing its products on the platform six years ago in favor of concentrating on its official website and physical distribution centers.
Online sales for Nike, however, have been declining.
According to Nike’s latest data for the three months ending in February, digital sales fell in every region where the company sells its products, with Greater China experiencing a 20% decline and Europe, the Middle East, and Africa experiencing the biggest drop at 25%.
Nike brought back former senior executive Elliott Hill to take over the company’s operations from Mr. Donahoe late last year because the company’s overall revenue has been dropping.
Mr. Hill is currently leading Nike’s turnaround, with a particular emphasis on the US, China, and the UK.
