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Nike sued for raising shoe prices and pocketing tariff refunds

The class action lawsuit is built around a "double recovery" argument and is just one of many similar ones before the courts right now. ©Image Credit: Unsplash / Ryan Waring

The tariff drama continues and looks to be getting even messier for some companies. Nike has been sued for allegedly raising its shoe prices to make up for tariffs, and then pocketing the tariff refunds it got after the courts ruled the tariffs illegal.

Class action suit filed

A class action suit against Nike has been filed in Oregon. It claims that Nike is potentially going to profit from the tariff ruling.

The suit outlines that Nike originally passed on the tariff-related costs to consumers, charging them higher prices for apparel and shoes.

It goes on to say that now Nike is eligible to get tariff refunds from the government to cover the tariffs that consumers paid for, calling it a "double recovery."

“Nike stands to recover the same tariff payments twice, once from consumers through higher prices and again from the federal government through tariff refunds,” the complaint states.

Nike admitted to tariffs affecting its business

In June 2025, Nike announced that it needed to increase prices on shoes and apparel to pay for the tariffs. The lawsuit references this announcement, claiming that it was a public acknowledgement from the company.

The suit claims that Nike increased prices on apparel by $2 to $10, and shoes were increased by $5 to $10. It also claims that the company told its investors at the time that tariffs could cost up to $1 billion annually.

Nike isn't the only company facing a tariff refund lawsuit

This is just one of many tariff refund-related lawsuits to be filed. Some of the other companies facing lawsuits right now include Ray-Ban parent company EssilorLuxottica, Nintendo, Costco, and FedEx.

The arguments are all the same: costs were passed along to consumers, and the companies may now get a "double recovery."

This may be the start of a trend

Depending on how these lawsuits play out, this could be the start of a new trend with many more claims to come.

Source: KATU2 ABC

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