Nike to hike prices as it faces tariffs uncertainty

Nike is set to raise prices on some trainers and clothing in the US from early June, weeks after rival Adidas warned it would have to hike the cost of products due to tariffs.

The sportswear giant did not name US tariffs explicitly as a reason for the increase, saying it regularly made "price adjustments".

Almost all of Nike's goods are made in Asia - a region targeted by President Donald Trump's tariffs.

The US has paused higher so-called "reciprocal" tariffs until July, but a "base" levy of 10% remains in place against a long list of countries.

Tariffs, which are a tax on imports, are almost always paid by the company that is importing the goods into a country rather than the business which makes the product.

While importers can decide to absorb the extra charge, they often choose to pass it on to the consumer.

Ahead of his tariff announcements, Trump disputed those predictions. He has since attacked firms, including Mattel and Walmart, that have linked price rises to the measures.

"Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain," he wrote on social media over the weekend, saying the company had made billions of dollars and should "eat the tariffs".

Commenting on its price rises, Nike said: "We regularly evaluate our business and make pricing adjustments as part of our seasonal planning."

In a call with investors in March, Nike's finance chief Matt Friend said that the company was "navigating through several external factors that create uncertainty in the current operating environment" including tariffs.

He also said Nike was monitoring "the impact of this uncertainty and other macro factors on consumer confidence".

From Sunday, 1 June, most Nike shoes that cost more than $100 (£74.50) will see prices rise by as much as $10.

Prices of clothing and equipment will also be raised by between $2 to $10.

Nike's popular Air Force 1 trainers, as well as shoes that cost less than $100, will be exempted from the price hikes. Children's products and Jordan branded apparel and accessories will also be excluded.

Last month, Adidas said that levies imposed by Trump would lead to higher prices in the US for popular trainers including the Gazelle and Samba.

On Wednesday, UK sportswear retailer JD Sports said higher prices in its key US market due to tariffs could hit customer demand.

Companies around the world are contending with the uncertainty of the Trump administration's trade policies.

A slew of steep "reciprocal" tariffs, which were announced on 2 April, were put on hold as countries from around the world negotiate with the White House.

Goods from Vietnam, Indonesia, Thailand and China - countries that make shoes for US companies - are set to face some of the heaviest US import taxes of between 32% to 54%.

The 90-day pause is due to expire in early July, but the base 10% tariff remains in place.

Vietnam is by far the biggest manufacturer of Nike goods. In its last full financial year, the company said factories in Vietnam produced 50% of all its footwear and 26% of its clothing.

Companies in China, Indonesia and Cambodia also make products for Nike.

Manufacturing for overseas businesses is a key sector for Vietnam and Trump placed one of the highest reciprocal tariffs on the country at 46%.

This week, the US president's son, Eric, is visiting Vietnam days after the country's government approved a plan by the Trump Organisation and local business Kinh Bac City Development to invest $1.5bn in hotels, golf courses and luxury real estate.

The Trump Organisation is also scouting for locations to build a Trump Tower in Ho Chi Minh City.

Nike said it would sell products directly to Amazon in the US for the first time since 2019.

The company had previously listed its goods on the platform, but stopped six years ago to focus on its official website and physical stores as part of a strategy by its then chief executive John Donahoe.

However, Nike's online sales have been falling.

In its most recent results for the three months to the end of February, digital sales tumbled across all the regions where Nike sells its goods, with Europe, the Middle East and Africa showing the sharpest drop of 25% while Greater China recorded a 20% fall.

The company's overall revenue has been declining and late last year Nike brought back Elliott Hill, a former senior executive, to takeover running the business from Mr Donahoe.

Mr Hill is now conducting a turnaround of Nike which will focus on the UK, the US and China.

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