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.
Commenting on its price rises, Nike said: “We regularly evaluate our business and make pricing adjustments as part of our seasonal planning.”
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.
Weeks after rival Adidas warned it would have to increase product prices due to tariffs, Nike is planning to raise prices on some sneakers and apparel in the US starting in early June.
The sportswear behemoth claimed it frequently made “price adjustments” but did not specifically attribute the increase to US tariffs.
President Donald Trump has imposed tariffs on Asia, where nearly all of Nike’s products are manufactured.
A 10 percent “base” levy is still in effect against a long list of nations, but the US has put a halt to higher so-called “reciprocal” tariffs until July.
Tariffs are taxes on imports that are typically paid by the company bringing the goods into a nation, not the company that produces the goods.
Importers frequently decide to pass the additional cost on to the customer, though they are free to choose to absorb it.
Trump denied those forecasts prior to his tariff announcements. Since then, he has criticized companies like Walmart and Mattel that have connected price increases to the actions.
On social media over the weekend, he wrote, “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain.” He claimed that the company should “eat the tariffs” because it had made billions of dollars.
Nike responded to its price increases by 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.
“The impact of this uncertainty and other macro factors on consumer confidence” is something Nike is keeping an eye on, he added.
Prices for 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.
The popular Air Force 1 trainers from Nike and shoes under $100 will not be affected by the price increases. Products for kids as well as clothing and accessories bearing the Jordan brand will not be accepted.
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 may reduce consumer demand.
Businesses everywhere are struggling with the unpredictability of the trade policies of the Trump administration.
As nations from all over the world negotiate with the White House, a number of high “reciprocal” tariffs that were announced on April 2nd have been put on hold.
Products from China, Vietnam, Indonesia, and Thailand—all of which produce shoes for American corporations—will be subject to some of the highest import duties in the US, ranging from 32% to 54%.
Despite the 90-day pause ending in early July, the base 10 percent tariff is still in effect.
By far the largest Nike product manufacturer is Vietnam. During its most recent fiscal year, the company reported that 26% of its apparel and 50% of its footwear were made in Vietnamese factories.
Nike also uses manufactures in China, Indonesia, and Cambodia.
Vietnam is a major supplier of goods to foreign companies, and Trump imposed one of the highest reciprocal tariffs on the nation—46 percent.
Days after the Vietnamese government approved a plan by the Trump Organization and local company Kinh Bac City Development to invest $1.05 billion in hotels, golf courses, and luxury real estate, the US president’s son, Eric, is traveling to Vietnam this week.
Additionally, the Trump Organization is searching for potential sites in Ho Chi Minh City for the construction of a Trump Tower.
For the first time since 2019, Nike announced that it would sell goods directly to Amazon in the US.
As part of a plan by its then-CEO John Donahoe, the company had previously listed its products on the platform but halted six years ago to concentrate on its official website and physical stores.
Nike’s internet sales, however, have been declining.
All of the regions where Nike sells its products saw a sharp decline in digital sales in its most recent results for the three months ending in February. Europe, the Middle East, and Africa saw the biggest decline, at 25%, while Greater China saw a 20% decline.
Due to the company’s overall declining revenue, Nike brought back former senior executive Elliott Hill late last year to take over the company’s management from Mr. Donahoe.
At Nike, Mr. Hill is currently leading a turnaround with an emphasis on the US, China, and the UK.
