Nike is set to raise prices on its athletic footwear and apparel in the US from the 1st of June, a few weeks after rival Adidas warned that US tariffs would force it to raise prices on its products. Nike did not explicitly state that it was raising prices because of US tariffs, but said it was making “regular price adjustments”, according to the British broadcaster BBC.
From Sunday the 1st of June, most Nike shoes costing more than 150 US dollars will go up by as much as ten US dollars. Nike Air Force 1 shoes will not see a price increase.
Prices for clothing and equipment will also be increased by between two and ten dollars.
Nike will not increase prices on children’s products as the critical back-to-school shopping season approaches.
“We regularly evaluate our business and make price adjustments as part of our seasonal planning,” the company said.
Businesses around the world are facing uncertainty from the Trump administration’s trade policies. A string of tough “reciprocal” tariffs announced on the 2nd of April has been put on hold while countries from around the world negotiate with the White House. The 90-day pause will end at the beginning of July, but the 10% basic tariff remains in place.
THE COMPANY MANUFACTURES A LARGE PART OF ITS FOOTWEAR IN CHINA AND VIETNAM.
Goods from Vietnam, Indonesia, Thailand and China – countries that produce footwear for US companies – are set to face some of the heaviest US import duties, ranging from 32% to 54%.
Vietnam is the largest producer of Nike products. In its last full financial year, the company announced that factories in Vietnam produced 50% of all Nike footwear and 26% of its clothing.
Companies in China, Indonesia and Cambodia also produce Nike products.
Manufacturing is an important sector for overseas companies in Vietnam and Trump imposed one of the highest reciprocal tariffs on Vietnam at 46%.
Nike also announced that it will sell products directly through Amazon stores in the US for the first time since 2019.
The company had previously offered its products on the platform, but stopped doing so six years ago to focus on its official website and physical stores as part of a strategy by then CEO John Donahoe.
However, Nike’s online sales have declined.
In the latest three-month results to the end of February, Nike’s online sales declined in all regions. The biggest drop was in Europe, the Middle East and Africa (down 25%), followed by a 20% drop in China.
The company’s overall revenues have been declining and at the end of last year Nike brought back former senior executive Elliott Hill to take over from Donahoe.