Nike sued by consumers for not refunding tariff costs

By Jonathan Stempel May 8 (Reuters) – Nike was sued on Friday by consumers who accused the athletic apparel and โ€Œfootwear maker of not refunding tariff-related costs it passed โ€Œon in the form of higher prices. In a proposed class action, consumers said โ€‹Nike should not be allowed to keep “significant” refunds it can expect…


Nike sued by consumers for not refunding tariff costs

By Jonathan Stempel

May 8 (Reuters) – Nike was sued on Friday by consumers who accused the athletic apparel and โ€Œfootwear maker of not refunding tariff-related costs it passed โ€Œon in the form of higher prices.

In a proposed class action, consumers said โ€‹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 โ€ŒAct.

The Beaverton, Oregon-based company โ has said it paid about $1 billion in tariffs on imported goods as a result of Trump’s โ 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 โ€‹no legally โ€‹binding commitment to return tariff-related โ€‹overcharges to the consumers โ€Œwho actually paid them,” the complaint said.

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

Nike did not immediately respond to requests for โ€Œcomment.

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

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

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

(Reporting by Jonathan Stempel in New โ€‹York; Editing by Bill Berkrot)

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