A class-action lawsuit filed in federal court in Oregon accuses Nike of improperly retaining tariff refunds after raising retail prices in response to tariffs imposed on imported goods. The complaint argues that Nike collected tariff payments twice: first by increasing prices for consumers and second by claiming refunds from the government.
When widespread tariffs were introduced, Nike projected the added costs would amount to roughly $1 billion. The company reacted by hiking prices on certain footwear by several dollars and apparel by up to ten dollars. However, after a Supreme Court ruling declared many of those tariffs unlawful, companies like Nike sought reimbursement through tariff refund claims.
The lawsuit emphasizes that although importers initially absorbed tariff expenses, these costs were largely transferred to consumers. Despite this, Nike reportedly made no binding agreement to return the tariff-related overcharges to the customers who ended up paying higher prices. Plaintiffs argue that the company’s actions result in unfair enrichment at the expense of consumers who never received any rebate or price adjustment following the refunds.
Nike has not commented on the allegations or indicated whether it intends to pass any tariff refund savings back to its buyers. The legal action aims to achieve class-action status, potentially affecting a wide group of consumers who purchased Nike products during the tariff period.
This case is among multiple lawsuits targeting major retailers such as Costco, accusing them of similarly retaining tariff refunds without reducing prices for shoppers. The controversy follows a pivotal Supreme Court decision that invalidated most of the cited tariffs, opening the door for companies to recover duties paid but raising questions about how those savings should be handled with end consumers.