NIKE will increase the price of some trainers and clothing in the early June for weeks of warning that competitors ADIDAS should raise product costs due to tariffs.
Sportswear giants regularly say “price adjustment,” and have not explicitly appointed US tariffs.
Almost all of Nike’s products are aimed at Donald Trump’s tariffs in Asia.
The United States has suspended the so -called “mutual” tariffs by July, but 10%of the “basic” charges remain compared to a long list.
Tax duties for imports are almost always paid by companies that import products into countries, not countries that make products.
An importer can decide to absorb additional fees, but often choose to deliver it to consumers.
Prior to his tariff announcement, Trump challenged this prediction. He then attacked companies, including Mattel and Walmart, which linked prices to measures.
“Wal -Mart should stop blaming tariffs for reasons of prices in the chain,” he wrote on social media during the weekend.
NIKE mentioned the price increase and said: “We regularly evaluate business and adjust the price as part of the season plan.”
Nike’s financial officer, Matt Friend, said in a phone call with investors in March, “We are exploring some external factors that cause uncertainty in the current operating environment.”
He also said Nike is monitoring the “impact on consumer trust of this uncertainty and other macro factors.”
Starting on Sunday, June 1, more than $ 100 NIKE shoes (74.50 pounds) will increase to $ 10.
The price of clothing and equipment is also increased from $ 2 to $ 10.
NIKE’s popular Air Force 1 trainer and less than $ 100 shoes are exempt from price hikes. Children’s products and Jordan brand clothing and accessories are also excluded.
Last month, Adidas said Trump’s charges would increase prices in the United States for popular trainers, including Gazelle and Samba.
JD SPORTS, a UK sportswear retailer on Wednesday, said that higher prices in major US markets could meet customer demand due to tariffs.
Companies around the world are fighting against the uncertainty of the Trump administration’s trade policy.
The steep “mutual” tariffs announced on April 2 were suspended as countries around the world negotiated with the White House.
Vietnam, Indonesia, Thailand and China’s products (countries that wear shoes for US companies) will face some of the US imported taxes between 32% to 54%.
The 90 -day suspension will expire in early July, but the basic 10% tariff remains.
Vietnam is the largest manufacturer of Nike Goods. The company said that in the last fiscal year, Vietnamese factories produced 50%of all shoes and 26%of clothing.
Companies in China, Indonesia and Cambodia also make products for NIKE.
The manufacturing for overseas business is the core sector of Vietnam, and Trump has deployed one of the highest mutual tariffs, 46%.
This week, the US president’s son Eric (ERIC) is visiting Vietnam for several days after approving the Trump organization and the local business Kinbash City development plan.
The Trump organization is also scouting the place to build a Trump Tower in Ho Chi Minh City.
NIKE said it will sell its products directly in the United States for the first time since 2019.
The company previously listed the product on the platform, but was suspended to focus on official websites and actual stores as part of the strategy of Chief executive John Donahoe six years ago.
But Nike’s online sales have decreased.
In the most recent results for three months until the end of February, digital sales have fallen 25% in Europe, the Middle East and Africa in all areas where NIKE sells products, while Greater China fell 20%.
The company’s overall profits are decreasing, and at the end of last year, NIKE acquired Donahoe’s business with former senior executive Elliott Hill.
MR HILL is currently focusing on the UK, the United States and China.
