NIKE is set to raise the prices on some items to get ahead of rivals Adidas – weeks after the rival made a chilling confession of its own.
The sportswear giant is making big moves as it also folds in Amazon for the first time in years, but reasons are still vague as to why.
Nike is set to raise the prices on some items to get ahead of rivals Adidas – weeks after the rival made a chilling confession of its ownGetty Images - GettyWhile Nike has remained ambiguous during its price hike reveal, saying that it regularly makes them.
However, many believe that it is in direct response to the tariffs imposed by Donald Trump.
Almost all of Nike‘s goods are made in Asia, an area of the world that has been heavily targeted by the President’s economic reforms.
The US has paused higher so-called “reciprocal” tariffs until July, but a “base” levy of 10% remains in place against a long list of countries.
As a result, BBC reports that Nike is set to raise the price on some of its items, such as sneakers and clothing, from early June in the US.
From Sunday June 1, most Nike shoes that cost more than $100 will see price rises by as much as $10.
Prices of clothing and equipment will also be increased to the tune of between $2 and $10.
It is important to know that there are some exemptions, such as Nike‘s popular Air Force 1 shoes, as well as those that cost less than $100.
Children’s products and Jordan branded apparel and accessories will also be excluded.
This means that back to school shoes will not become more expensive for customers.
While importers do not have to pass the extra costs onto consumers, it is often the way most companies get around the higher production expenses.
Nike said in a statement on the price rises: “We regularly evaluate our business and make pricing adjustments as part of our seasonal planning.”
Nike‘s finance chief Matt Friend added that the company is monitoring “the impact of this uncertainty and other macro factors on consumer confidence”.
GETTING AHEAD OF THE COMPETITION
Nike has made this announcement just weeks after rival Adidas made a similar one.
Adidas said last month that tariffs would lead to increased prices in the US for popular shoes including the Gazelle and Samba.
The sportswear industry in particular has been sent into a spiral with the announcement of the tariffs.
Goods from Vietnam, Indonesia, Thailand and China – countries that make shoes for US companies – are set to face some of the heaviest US import taxes of between 32% to 54%.
Nike said factories in Vietnam produced 50% of all its footwear and 26% of its clothing last year.
What items will be affected by the tariffs?
AMERICANS should prepare to see significant prices changes on everything from avocados to cars under President Donald Trump's new global tariffs.
Here is a list of some of the everyday products that could see a massive price tag surge.
Coffee Tea Bananas Foreign-made cars Sneakers Furniture and other home goods Pharmaceuticals Video games Clothing Toys Washers and dryers Avocados Housing materialsWhile that rate has been paused until July, it is not known what it will reach after that.
But Nike is making more moves than just raising prices for consumers.
The company has said it will sell products directly to Amazon in the US for the first time since 2019.
Nike stopped doing this to focus mon its official website and physical stores.
However, Nike‘s online sales have been falling, with a 25% drop in the Middle East and a 20% fall in Greater China.
GettyAdidas said last month that tariffs would lead to increased prices in the US for popular shoes including the Gazelle and Samba[/caption] SplashMany believe that it is in direct response to the tariffs imposed by Donald Trump[/caption] Read More Details
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