Topline
Footwear and apparel titan Nike will soon increase prices on some of its products, according to multiple outlets, issuing the price hikes as President Donald Trump’s sweeping tariff policy impacts the larger retail industry—though the company did not directly blame the levies for the price increases.
The markups will go into effect June 1. (Photo by John Smith/VIEWpress via Getty Images)
Corbis via Getty ImagesKey Facts
Nike will increase apparel and equipment prices between $2 and $10 depending on the item, according to CNBC, which reported the markups could be seen as soon as this week despite officially going into effect June 1.
Prices of footwear between $100 and $150 will jump as much as $5, while footwear exceeding $150 will increase up to $10.
Excluded from the price hikes are all kids products and products under $100, as well as the Air Force 1 shoe and Jordan apparel and accessories.
While consumers will experience price hikes next month, Nike retail partners will not see the new prices until July, Complex reported, adding the increase will come at the start of Nike’s next fiscal year.
Nike did not explicitly attribute the markups to tariffs, telling Forbes and other outlets it regularly evaluates its business and makes “pricing adjustments as part of our seasonal planning.
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Big Number
About 50%. That is the share of Nike’s footwear manufactured from China and Vietnam, according to CNBC. Both countries are facing tariffs imposed by the Trump administration, with China being subject to a 30% rate and Vietnam to a 10% rate.
Key Background
Nike is one of dozens of footwear companies including Adidas, Brooks, Under Armour and Sketchers that have pushed for tariff exemptions, co-signing a letter from the Footwear Distributors and Retailers of America to the Trump administration that argued “American footwear businesses and families face an existential threat from such substantial cost increases.” It also claimed tens of thousands of jobs are at stake under Trump’s tariff actions and that footwear inventory may run low soon. While the president has not specifically commented on the footwear brands’ plea, Trump has told retail conglomerate Walmart to absorb the costs of tariffs instead of passing them on to consumers.
Further Reading
Trump Tells Walmart ‘Eat The Tariffs’ After Retailer Warns Of Higher Prices—Here’s What Could Go Up In Price (Forbes)
Read the full article here
