Nike to increase prices when firms face tariffs for uncertainty

Nike intends to raise prices on some coaches and clothing from June 1, a few weeks after the Adidas opponent warned that he would have to collect the cost of products from the US tariffs.

The giant on sportswear did not name the tariffs in the United States obviously as a reason for the increase, saying that it regularly made a “price adjustment”.

Almost all Nike goods produced in Asia – Region aimed at President Donald Trump tariffs.

The US stopped with the higher so -called “return” tariffs by July, but the “basic” collection of 10% remains against the long list of countries.

Tariffs are almost always paid by a company that imports goods into the country, not the business that makes the product.

While importers can decide to absorb an additional tax, they can also transfer it to the consumer.

From Sunday, June 1, most Nike shoes, which costs more than $ 100 (£ 74.50), will see that prices are rising at as much as $ 10.

Prices for clothing and equipment will also rise from $ 2 to $ 10.

Commenting on the price increase, Nike said: “We regularly evaluate our business and make pricing adjustments within our seasonal planning.”

In the call with investors in March, Nike Matt’s chief finance said a friend that the company “moved through several external factors that create uncertainty in modern operating conditions, including tariffs.

He also said that Nike monitors “the impact of this uncertainty and other macro -factors on consumer trust.”

The BBC has contacted Nike to check if the last price increase will only apply to the US or internationally.

Popular Air Force Coaches 1 Nike, as well as shoes that cost less than $ 100, will be released from hikes. Children’s products, as well as Jordan’s clothing and accessories will also be excluded.

Last month, said Adidas What is charged with Trump will increase prices in the United States for popular coaches, including gas and samba.

On Wednesday, the Sportswear retailer in the UK JD Sports said higher prices in its key market from the tariffs may fall into customer demand.

Companies around the world are fighting the uncertainty of Trump administration trade policy.

Many cool “mutual” tariffs, which were announced on April 2, were stopped because countries from all over the world are negotiating with the White House.

Vietnam goods, Indonesia, Thailand and China are countries that make shoes for US companies – should face some of the most difficult taxes in the US from 32% to 54%.

The 90-day pause should end in early July, but the base tariff remains 10%.

Vietnam is definitely the largest Nike product manufacturer. In the last full financial year, the company stated that the factories in Vietnam produced 50% of all shoes and 26% of their clothes.

Companies in China, Indonesia and Cambodia also produce products for Nike.

Production for foreign enterprises is a key sector for Vietnam, and Trump has placed one of the highest mutual tariffs for the country by 46%.

This week, US President Eric’s son Vietnam visits Vietnam a few days after the country’s government approved the Trump organization and Kinh Bac development plan to invest $ 1.5 billion in a hotel, golf -plats and luxury real estate.

The Trump organization is also understanding in places to build a Trump tower in Hoshmin.

Nike also said he would sell products directly to Amazon for the first time since 2019.

Earlier, Nike listed his goods on the platform, but stopped six years ago to focus on his official site and physical shops within the strategy of his then executive director John Donaho.

However, Nike selling on the Internet is falling.

In their recent results, three months before the end of February, digital sales collapsed in all regions where Nike sells its goods, and Europe, the Middle East and Africa show that a sharp drop by 25% and greater China recorded a 20% drop.

The company’s total income declined, and at the end of last year, Nike returned Elliot Hill, a former senior executive director to manage Mr. Donaho’s business.

Mr. Hill is now conducting Nike’s turning on the UK, USA and China.