Athletic retailer Nike announced this week plans to raise prices on many items starting June 1. The company did not specify whether tariffs influenced the decision to increase prices, but many analysts have noted that recently implemented import taxes could significantly impact shoe and apparel sales.
Nike stated that prices for many items would increase across various shoe models. Footwear priced between $100 and $150 will rise by approximately $5, while shoes costing more than $150 will see increases of up to $10.
More broadly, items are expected to cost $2 to $10 more after June 1.
Some items will be exempt from Nike's price increases, including all kids' products, items priced under $100, Air Force 1s, and Jordan apparel and accessories. The announcement comes as President Donald Trump has implemented tariffs on imported goods, which are anticipated to have a profound impact on shoes and apparel. According to the U.S. International Trade Commission, over 96% of footwear in the U.S. is imported.
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Nearly 42% of shoes worn in the U.S. come from China. President Trump recently reduced the tariff rate he imposed on goods from China from 145% to 30% for 90 days to facilitate trade negotiations. He has also imposed a 10% tax on imports from other countries. Additionally, nearly 31% of shoes worn in the U.S. are made in Vietnam
"I think what you have right now is a situation where retailers in particular are trying their best to hold off as long as possible to see what our trade policy is going to be," said Alex Jacquez, a former economic adviser to then-President Joe Biden. "They've already seen Trump walk back those Liberation Day reciprocal tariffs. Just recently, saw Trump walk back the 145 percent tariffs on China.
"And so now you're trying to see, if you're a company, you're trying to see how long you can get away with burning down your inventory before you have to raise prices. What I think we've been seeing over the last couple of weeks is that the breaking point is being hit. You're now seeing retailers like Walmart, like Adidas, like Nike saying that they're going to have no choice but to increase prices on consumers. And consumers, you know, their sentiment is in the toilet right now."
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