Nike Sued Over Tariff Refunds

Nike, Inc. is facing a proposed class action lawsuit filed by consumers who allege the company failed to refund tariff-related costs that were passed on through higher prices. The lawsuit claims that Nike, Inc. raised prices on footwear by $5 to $10 and apparel by $2 to $10 to offset approximately $1 billion in tariffs paid on imported goods, which were imposed by Donald Trump under the International Emergency Economic Powers Act. The consumers argue that following the United States — Supreme Court of the United States' decision to strike down these tariffs, Nike, Inc. stands to receive significant refunds from the federal government and should not be allowed to recover these payments twice. Nike, Inc. has not yet commented on the lawsuit, which is one of several similar cases against major companies including Costco and EssilorLuxottica. The outcome of this case could set a precedent for whether consumers are entitled to recover price increases implemented by companies to offset duties later deemed unlawful. Additionally, Nike, Inc. recently announced plans to lay off around 1,400 employees as part of its business restructuring.