Nike Inc. is facing a proposed class-action lawsuit accusing the company of improperly seeking tariff refunds after allegedly passing those same tariff costs on to consumers.
In the proposed lawsuit, consumers argue Nike should not be allowed to keep “significant” refunds it may receive after the U.S. Supreme Court ruled in February that President Donald Trump lacked authority under the International Emergency Economic Powers Act (IEEPA) to impose certain tariffs.
Filed in the U.S. District Court for the District of Oregon on May 8, the lawsuit alleges that Nike would improperly retain a “windfall” by both passing tariff costs on to consumers through higher retail prices and simultaneously seeking refunds from the federal government following the Supreme Court ruling.
They claim that after the Supreme Court invalidated the tariff program in February 2026, Nike became eligible for refunds on duties that it had allegedly already passed on to consumers through higher prices. “This lawsuit seeks to prevent that unjust result,” the complaint states.
The complaint maintains that Nike’s own public statements serve as evidence. In April 2025, Nike joined other footwear companies in signing a Footwear Distributors & Retailers of America letter warning the White House that tariffs would lead to “significant price increases” for consumers. The suit also cites Nike’s announcement of “surgical” price hikes beginning June 1, 2025, including increases of $5 to $10 on select footwear and up to $10 on apparel and equipment. The plaintiffs argue that because Nike publicly acknowledged passing tariff-related costs downstream, any subsequent tariff refund should belong – at least in part – to consumers.
The filing stated, “Nike has made no legally binding commitment to return tariff-related overcharges to the consumers who actually paid them. Unless restrained by this court, Nike stands to recover the same tariff payments twice — once from consumers through higher prices and again from the federal government through tariff refunds.”
Nike did not immediately respond to requests for comment.
Nike previously said the tariffs cost the company about $1 billion on imported goods. During a recent March conference call, Nike said its fiscal quarter ending in August 2026 would likely be the final period in which tariffs materially affect gross
Nike is not alone in the tariff-refund backlash. Other major companies, including Costco, Fabletics, and Ray-Ban owner EssilorLuxottica, have also been hit with similar lawsuits from consumers arguing tariff savings should be refunded back to consumers.
More than 2,000 companies have filed suits in the U.S. Court of International Trade seeking to recover tariffs paid on imported goods.
Nike’s case number is Caldwell et al. v. Nike, Inc., 3:26-cv-00923 (D. Or.).
Images courtesy Nike
