Nike Announces Price Hike in the US

Athletic footwear and apparel giant Nike has announced that it will raise prices(Price Hike) on many items in the United States next month. According to the company, sneakers currently priced between $100 and $150 will see increases of up to $5, while those priced above $150 will be subject to price hikes of up to $10.

However, Nike assures that there will be no price increases on children’s products, items priced under $100, Air Force 1 sneakers, and non-shoe items from the Jordan line. Other Nike apparel and equipment will experience price increases ranging from $2 to $10.

“We regularly evaluate our business and make pricing adjustments as part of our seasonal planning,” Nike stated. The company manufactures most of its products in China, Vietnam, and Indonesia. When questioned about potential links between the price increases and tariffs imposed by President Donald Trump, Nike emphasized that product prices are determined by various factors.

It’s worth noting that UBS analysts estimate Nike may need to raise prices by 10-12% on Vietnam-sourced goods due to the tariffs. Additionally, recent trends show retailers slashing prices on Nike sneakers, with a 44% increase in discounted Nike sneakers in 2024 compared to 2022. The average price of Nike sneakers at Macy’s fell to $79.92 in 2024 from $103.61 in 2022.

Nike’s decision to increase prices comes as President Trump imposes steep tariffs on many US trading partners, including major clothing manufacturers China and Vietnam. However, Trump issued a temporary reprieve for most countries a week later, with most countries subject to a 10% baseline tariff and Chinese imports facing a 30% levy.

Nike’s price hike strategy is likely a response to rising labor, material, and transportation costs, with predicted increases of 5-10% on high-end shoes and merchandise. Analysts suggest that tariffs imposed by the US on Asian imports, where Nike manufactures most of its products, could further drive up prices. UBS forecasts a 10-12% increase in costs for goods from Vietnam, potentially impacting Nike’s pricing. Experts believe Nike might pass these costs onto consumers, but price hikes could dampen demand in the competitive footwear industry.