Will Your Wallet Feel the Squeeze? Nike's Price Hikes Amid Tariff Turmoil

Nike is bracing consumers for price increases on select trainers and apparel in the US starting June 1. This move follows Adidas’ recent announcement regarding similar actions attributed to the uncertainties of the tariffs imposed by the Trump administration. Although Nike has not directly cited US tariffs as the reason for their price adjustments, the company typically conducts regular evaluations and makes price changes as part of their seasonal planning.

Most of Nike’s products are manufactured in Asia—specifically, countries like Vietnam, China, Indonesia, and Cambodia, which face significant import taxes ranging from 10% to 54%. The existing 10% base tariff is still active despite a recent 90-day pause announced for additional reciprocal tariffs. Consumers can expect to see price increases of up to $10 on footwear priced over $100, with some clothing and equipment seeing hikes of $2 to $10. However, popular models like the Air Force 1 and children’s products will not see price increases.

Nike’s finance chief, Matt Friend, acknowledged the challenges posed by external factors, including tariffs, and how they are impacting consumer confidence. In contrast, President Trump has publicly criticized companies attributing price increases to tariffs, insisting they should absorb the costs instead. Globally, brands like Adidas and retailers such as JD Sports express concerns that higher prices could diminish customer demand.

Interestingly, Nike is also returning to Amazon for product sales after a six-year hiatus, as its online sales have seen a significant downturn, particularly in regions like Europe, the Middle East, and Africa. Former senior executive Elliott Hill is taking the reins to support a turnaround strategy focused on improving performance in key markets including the US, UK, and China.