Nike to Raise U.S. Prices Amid Tariff Uncertainty

Nike plans to increase prices across most of its American product range starting June as it faces unresolved tariffs alongside weakening consumer demand.

The company announced price increases which fit its normal seasonal pricing plan but occur at a time when trade disputes and new Trump administration tariffs are intensifying. The supply chain operated by Nike in Asia faces potential harm from U.S. trade policy because it is dependent on this region.

The United States imposes a 10% tariff on all Vietnamese imports because this country produces 50% of Nike footwear and more than 25% of its apparel. The Trump administration proposed a 46% “reciprocal tariff” in April but later lowered it to 10% before the expiration date in July. Major Nike suppliers including China, Indonesia and Cambodia experience the same level of pressure.

The price of Nike footwear that exceeds $100 will increase by $10 starting from June 1. Adult apparel and equipment will experience price hikes between $2 and $10. The Air Force 1 sneaker as well as products below $100 and children’s items remain unaffected by the price increases. The exemption for Jordan-branded sneakers does not apply to their apparel or accessories.

Nike has made a comeback to the Amazon marketplace after a six-year break to demonstrate its commitment to strengthening its declining online sales. The latest digital revenue results demonstrated a significant decrease throughout every region with EMEA reporting a 25% decline and China experiencing a 20% drop. The company faces declining revenue which led Elliott Hill to lead a turnaround strategy that focuses on the U.S. market and the U.K. and Chinese markets.

The current trade policy situation has led President Trump to attack businesses that raise their prices due to tariffs. Through a social media post Trump specifically targeted Walmart by suggesting they should absorb the tariffs instead of transferring expenses to their buyers. The administration's current rhetoric might direct attention toward Nike as an example of the matter.

Eric Trump led a visit to Vietnam just after the nation approved a $1.5 billion real estate and hospitality project involving the Trump Organization's business.

Nike's pricing strategy mirrors the general retail problem of handling increasing costs while protecting customer base affected by rising inflation and economic instability.