Nike is facing a new class-action lawsuit accusing the company of failing to reimburse costs related to tariffs it passed on to consumers through higher prices.
In the proposed lawsuit, consumers argue that Nike should not be allowed to keep “significant” refunds it may receive after the U.S. Supreme Court ruled in February that the president does not have the authority under the International Emergency Economic Powers Act (IEEPA) to impose certain tariffs.
Nike said it paid approximately $1 billion in tariffs on imported products as a result of these actions. The plaintiffs allege that the company prices increased on select shoes from $5 to $10 and on select clothing from $2 to $10 to offset these costs.
“Nike has made no legally binding commitment to return tariff-related overcharges to consumers who actually paid them,” says the complaint filed in federal court in Portland, Oregon.
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Nike is facing a class-action lawsuit alleging the company failed to reimburse costs related to tariffs passed on to consumers through higher prices. (istock/iStock)
“Unless this court enjoins it, Nike risks recouping the same tariffs twice – once from consumers through higher prices and a second time from the federal government through tariff refunds,” the complaint continues.
This lawsuit is one of several filed against large companiesincluding Costco, alleging they failed to pass on rate-related refunds to consumers.
Teleprinter Security Last Change Change % OF NIKE INC. 44.14 -0.27 -0.61% More than 2,000 companies have filed lawsuits in the U.S. Court of International Trade to try to recover customs duties paid on imported goods.
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A woman carries a shopping bag as she walks past a Nike Inc. store in Portland, Ore., Wednesday, April 24, 2013. (Natalie Behring/Bloomberg via Getty Images / Getty Images)
In a conference call in March, Nike said its fiscal quarter ending August 2026 would likely be the last period in which tariffs would have a significant impact on gross margins.
The lawsuit comes weeks after Nike announced plans to grossly lay off 1,400 employees within its global operations team.
In a memo to staff, Chief Operating Officer Venkatesh Alagirisamy said the cuts would primarily affect the company’s technology division in North America, Asia and Europe, accounting for just under 2% of its business. global workforce.
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The Nike logo is pictured at a store in Manhattan on March 30, 2026, in New York. (Zamek/VIEWpress/Getty Images)
Nike declined to comment to FOX Business.
Eric Revell of FOX Business and Reuters contributed to this report.