Anabelle Colaco
11 May 2026, 04:56 GMT+10
PORTLAND, Oregon: Nike has been sued by consumers who claim the sportswear giant has not refunded tariff-related costs that were passed on to shoppers through higher prices.
The proposed class-action lawsuit was filed on May 8 in federal court in Portland, Oregon.
Consumers argue that Nike should not be allowed to retain what they describe as significant tariff refunds, following the Supreme Court of the United States' decision striking down broad tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act.
Nike has said it paid about US$1 billion in tariffs on imported goods as a result of the measures.
According to the complaint, the company raised prices on some footwear by $5 to $10 and increased prices on some apparel by $2 to $10 to offset those costs.
"Nike has made no legally binding commitment to return tariff-related overcharges to the consumers who actually paid them," the complaint said.
"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 did not immediately respond to requests for comment.
The lawsuit adds Nike to a growing list of companies facing similar consumer claims, including Costco Wholesale and EssilorLuxottica, the maker of Ray-Ban sunglasses.
Those lawsuits allege that companies failed to pass along refunds after courts invalidated the collection of tariffs.
In a conference call on March 31, Nike said the fiscal quarter ending in August 2026 would likely be the final period in which tariffs would represent a material year-over-year headwind to its gross margin.
The case could become an important test of whether consumers are entitled to recover price increases that companies implemented to offset import duties later deemed unlawful.
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