Nike has announced that it will increase prices on a range of its trainers and clothing items starting 1 June, citing ongoing global trade uncertainties and seasonal pricing reviews. This move comes just weeks after rival brand Adidas revealed that U.S. tariffs were forcing it to raise prices as well.
While Nike did not directly attribute the price hikes to U.S. tariffs, the company stated that it regularly conducts “price adjustments” as part of its business strategy. However, industry analysts suggest that the current trade environment—especially tariffs affecting imports from Asia—is a major factor behind the decision.
Nearly all of Nike’s products are manufactured in Asian countries, including Vietnam, Indonesia, and China—regions currently targeted by U.S. tariffs introduced during former President Donald Trump’s administration. While the U.S. government has delayed the implementation of steep new “reciprocal” tariffs until July, a 10% base tariff still applies to a wide range of imported goods.
Tariffs are typically paid by the importer rather than the manufacturer, leaving companies like Nike with the choice to absorb the additional costs or pass them on to consumers. In this case, Nike is opting for the latter.
Beginning Sunday, 1 June, most Nike shoes priced above $100 will see a price increase of up to $10. Clothing and equipment items will also see a rise, with price jumps ranging from $2 to $10. However, some products—including the popular Nike Air Force 1 trainers, children’s items, and Jordan-branded apparel and accessories—will not be affected.
In a recent statement, Nike said:“We regularly evaluate our business and make pricing adjustments as part of our seasonal planning.”
Nike to Raise Prices Amid Tariff Uncertainty and Global Market Pressures
During a March call with investors, Nike Chief Financial Officer Matt Friend noted the company was navigating “several external factors that create uncertainty in the current operating environment,” including tariffs. He also expressed concern over how these issues might impact consumer confidence.
The BBC has reached out to Nike for clarification on whether the price increases will apply solely to U.S. markets or be implemented globally.
Meanwhile, other major brands are also feeling the effects. Adidas recently stated that U.S. tariffs would likely result in higher prices for popular sneakers like the Gazelle and Samba. UK-based retailer JD Sports echoed these concerns, saying tariffs may reduce demand in their crucial U.S. market.
The U.S. announced a series of steep “reciprocal” tariffs on 2 April, which have been temporarily paused while negotiations continue with various governments. However, the 10% base levy remains. Countries like Vietnam—where Nike manufactures about 50% of its footwear and 26% of its apparel—face the steepest tariffs, potentially as high as 46%.
China, Indonesia, and Cambodia also serve as key manufacturing hubs for Nike, further complicating the brand’s global supply chain. The uncertainty over trade policy has only intensified as the July tariff deadline approaches.
Amid this backdrop, the Trump Organization has been making headlines for separate reasons, with Eric Trump visiting Vietnam this week after the country’s approval of a $1.5 billion Trump Organisation-backed luxury development project.
In other news, Nike is making a strategic shift by resuming sales through Amazon in the U.S. for the first time since 2019. The brand had previously pulled its products from the platform to focus on its own e-commerce site and physical stores. However, this strategy has shown signs of strain.
Digital sales for Nike have recently dropped across all major regions. In the quarter ending February, digital revenue fell by 25% in Europe, the Middle East, and Africa, and declined by 20% in Greater China.
In response to these challenges, Nike has initiated a leadership shake-up. Former executive Elliott Hill has returned to lead a company turnaround focused on its core markets: the U.S., the UK, and China.
As it prepares for price increases and navigates global economic pressures, the brand’s long-term strategy will rely heavily on how well it can adapt to shifting trade dynamics, evolving consumer behavior, and increased competition.
Source- BBC
