Nike to raise prices as firms face tariffs uncertainty

Nike is set to raise prices on some trainers and clothing from 1 June, weeks after rival Adidas warned it would have to hike the cost of products due to US tariffs.

The BBC understands Nike's decision was taken due to a number of internal and external factors and the sportswear giant said it regularly made "price adjustments".

While it did not name US tariffs explicitly as a reason for the increase, 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 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 tax, they may also choose to pass it on to the consumer.

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.

The BBC has contacted Nike to check if the increases will be applied to just the US or internationally.

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.

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

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

Nike had previously listed its goods on the platform, but stopped six years ago to focus on its official website and physical stores.