The proposed class action lawsuit accuses Nike of not refunding the costs it passed onto consumers in higher prices in response to President Donald Trump’s so-called “Liberation Day” tariffs, Reuters reported Friday (May 8).
The plaintiffs argue that the company should not be allowed to keep “significant” refunds it can expect following a Supreme Court ruling which declared the tariffs illegal.
According to Reuters, Nike has said it paid around $1 billion in tariffs on imported items after the White House imposed new tariffs. Consumers say the company increased prices on some shoes by $5 to $10 and $2 to $10 on some apparel items to cover the costs.
“Nike has made no legally binding commitment to return tariff-related overcharges to the consumers who actually paid them,” the complaint reads. “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.”
A spokesperson for Nike declined to comment when reached by PYMNTS.
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As covered here last year, Nike was among a group of several “blue chip companies” that “reported 9- to 10-figure headwinds due to tariffs” in the latter half of the year.
Other companies facing legal action from customers seeking tariff refunds include FedEx, Costco and RayBans-maker EssilorLuxottica.
Meanwhile, research by PYMNTS Intelligence cataloged the impact of tariffs on businesses throughout the past year.
For example, surveys taken in September found that 48% of product executives said tariffs represented a long-term U.S. policy direction, while another 45% described them as a mix of short- and long-term measures. Just 7% viewed them as temporary.
Later in the year, 47% of goods product leaders said tariffs were mostly or completely negative for business finances, while 88% were still anticipating supply chain disruptions. However, around two-thirds of goods firms and 80% of services firms said tariffs could bolster supply chain resilience over time.
“The data reflects a shift from reaction to normalization,” PYMNTS wrote last month. “Tariffs are now embedded in planning assumptions rather than treated as external shocks. The next phase is less certain. Firms have adjusted, but the question is whether those adjustments can support renewed growth and not simply continued defense.”
