Consumers Sue Nike Over Tariff Price Hikes, Refunds

Consumers have filed a proposed class-action lawsuit against Nike in U.S. District Court in Oregon, accusing the athletic apparel giant of raising prices to pass tariff costs onto customers and now seeking to keep government refunds for those same tariffs.

The complaint, filed in federal court in Portland where Nike is headquartered, alleges that the company increased prices on some footwear by 5 to 10 percent and on some apparel by 2 to 10 percent after tariffs were imposed on imported goods. Nike has estimated it paid about $1 billion in those tariffs. Plaintiffs argue that without court intervention, Nike would recover the payments twice: once from consumers through higher prices and again from the federal government via refunds.

The tariffs in question stemmed from actions taken under the International Emergency Economic Powers Act. In February, the U.S. Supreme Court ruled that they were unlawful, paving the way for more than 2,000 companies, including Nike, to file suits in the U.S. Court of International Trade seeking reimbursements.

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