Nike to Increase Prices Amid Tariff Concerns

The sportswear giant Nike revealed it will raise prices on certain trainers and apparel as early as June 1, amid concerns about U.S. tariffs impacting manufacturing costs.

Nike, a leading sportswear brand, is set to implement price increases on select trainers and clothing starting June 1, a move prompted by various internal and external factors, including ongoing uncertainties surrounding U.S. tariffs. Although Nike did not explicitly cite tariffs as a driving force, the majority of its products are manufactured in Asia, a region that has been heavily targeted by the trade policies of former President Donald Trump.

The U.S. has paused higher so-called "reciprocal" tariffs until July, although an existing 10% base levy remains applicable to a vast array of imports. Companies importing goods typically bear these tariffs, but may decide to pass the additional costs onto consumers. From June 1, Nike intends to raise prices on trainers priced over $100 by a margin of up to $10, while clothing and equipment prices are expected to increase by $2 to $10.

In response to these anticipated hikes, Nike stated, “We regularly evaluate our business and make pricing adjustments as part of our seasonal planning.” Nike has yet to confirm whether these price adjustments will apply exclusively to the U.S. or extend internationally. Notably, popular items such as the Air Force 1 trainers and products priced below $100, along with children's apparel and Jordan-branded items, will remain unaffected by the price increases.

Adidas, a key competitor, recently indicated that its prices would also rise in light of similar tariffs, with products like the Gazelle and Samba lines expected to reflect increased costs. JD Sports, a prominent UK sportswear retailer, warned that rising prices in the U.S. due to tariffs could adversely affect customer demand, underscoring the pervasive uncertainty companies face amid evolving trade policies.

The tariffs targeting footwear have not been trivial; countries such as Vietnam, Indonesia, Thailand, and China, which supply substantial quantities of footwear to U.S. companies, are confronted with significant import taxes ranging from 32% to 54%. Notably, during its last financial year, Nike revealed that approximately 50% of its footwear and 26% of its clothing came from Vietnamese factories, the largest manufacturing source for the company.

Compounding the situation, recent reports have emerged regarding a planned $1.5 billion investment by the Trump Organization in Vietnam's hospitality and real estate sectors, coinciding with the ongoing tariff negotiations. In addition, Nike has announced plans to resume direct sales on Amazon for the first time since 2019, having previously curtailed this strategy to concentrate on its official website and physical outlets. However, the brand has encountered difficulties in its online sales, experiencing declines in multiple regions, including a 25% drop in Europe, the Middle East, and Africa, and a 20% decrease in Greater China.