Nike faces class action lawsuit accusing it of pocketing tariff refunds while charging consumers more

May 8, 2026

Nike faces a proposed class-action lawsuit filed in federal court in Portland, Oregon, accusing the company of pocketing tariff refunds from the U.S. government while failing to reimburse consumers for higher prices charged to offset those tariffs.

The suit stems from a February 2026 U.S. Supreme Court ruling that invalidated certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA), potentially entitling Nike to “significant” refunds on about $1 billion in duties paid on imported footwear and apparel. Plaintiffs claim Nike raised footwear prices by $5 to $10 and apparel by $2 to $10 to cover these costs, with no binding commitment to return overcharges to buyers, allowing the company to “recover the same tariff payments twice—once from consumers and again from refunds.”

This action mirrors similar lawsuits against companies like Costco, amid over 2,000 firms seeking tariff recoveries in the U.S. Court of International Trade. Nike has not commented publicly on the case, which follows recent layoffs and tariff impact statements in its fiscal updates. Fox Business