Nike sued by customers for not refunding tariff costs

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Nike Faces Lawsuit Over Failure to Refund Tariff Costs to Consumers

Nike is facing a lawsuit from consumers who claim that the company did not refund tariff-related costs that were passed on to them through higher prices. The consumers argue that Nike should not be allowed to keep the significant refunds it is expected to receive after the US Supreme Court struck down sweeping tariffs imposed by President Trump.

According to the proposed class action, Nike paid around $1 billion in tariffs on imported goods as a result of Trump’s actions. To offset these costs, the company raised prices on footwear by $5 to $10 and apparel by $2 to $10.

In a proposed class action, consumers said Nike should not be allowed to keep “significant” refunds it can expect after the US Supreme Court in February struck down President Trump’s sweeping tariffs. ZUMAPRESS.com

The complaint stated, “Nike has made no legally binding commitment to return tariff-related overcharges to the consumers who actually paid them. Unless restrained by this court, Nike stands to recover the same tariff payments twice — once from consumers through higher prices and again from the federal government through tariff refunds.”

Nike has not yet responded to requests for comment on the lawsuit. The company joins a list of other companies, including Costco and EssilorLuxottica, that have been sued for allegedly failing to pass on tariff refunds to consumers.

The sneaker giant has said it paid about $1 billion in tariffs on imported goods as a result of Trump’s actions. REUTERS

The lawsuit against Nike was filed in the federal court in Portland, Oregon. During a conference call on March 31, Nike mentioned that the fiscal quarter ending in August 2026 would likely be the final quarter when tariffs have a significant impact on gross margin.