US sportswear giant Nike is at the center of a consumer-led class action lawsuit. The company is accused of withholding refunds for tariffs and increasing prices.
In the lawsuit, filed in U.S. District Court in Oregon, consumers allege that Nike “could recover the same tariff payments twice – once from consumers through higher prices and again from the federal government through tariff refunds.”
The lawsuit was filed following a Supreme Court ruling. The court declared the global tariffs imposed by President Trump last year to be illegal. As a result, affected companies are entitled to refunds.
According to the lawsuit, Nike responded to the tariff increase by increasing prices on a selection of products, including shoes and accessories. Prices were raised by two to ten US dollars.
People involved in the lawsuit argued that Nike could collect “significant” refunds. The reason for this is that the company has “no legally binding obligation” to pay back customs-related surcharges to customers.
The complaint states: “If this court does not restrain Nike, Nike will recover the same tariff payments twice – once from consumers through higher prices and again from the federal government through tariff refunds.”
Nike is among a growing number of companies, such as EssilorLuxottica, facing similar lawsuits over claims for duty drawbacks.
Nike has not yet commented publicly on the lawsuit. In a conference call with investors earlier this year, management explained that the fiscal quarter ending August 2026 is expected to be the last period in which tariffs will have a year-over-year impact.
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