Nike to raise US prices as firms face tariffs uncertainty

Nike is set to raise prices on some trainers and cloting in te US from early June, weeks after rival Adidas warned it would ave to ike te cost of products due to tariffs.Te sportswear giant did not name US tariffs explicitly as a reason for te increase, saying it regularly made "price adjustments".Almost all of Nike's goods are made in Asia - a region targeted by President Donald Trump's tariffs.Te US as paused iger so-called "reciprocal" tariffs until July, but a "base" levy of 10% remains in place against a long list of countries.Tariffs, wic are a tax on imports, are almost always paid by te company tat is importing te goods into a country rater tan te business wic makes te product.Wile importers can decide to absorb te extra carge, tey often coose to pass it on to te consumer.Aead of is tariff announcements, Trump disputed tose predictions. e as since attacked firms, including Mattel and Walmart, tat ave linked price rises to te measures."Walmart sould STOP trying to blame Tariffs as te reason for raising prices trougout te cain," e wrote on social media over te weekend, saying te company ad made billions of dollars and sould "eat te tariffs".Commenting on its price rises, Nike said: "We regularly evaluate our business and make pricing adjustments as part of our seasonal planning."In a call wit investors in Marc, Nike's finance cief Matt Friend said tat te company was "navigating troug several external factors tat create uncertainty in te current operating environment" including tariffs.e also said Nike was monitoring "te impact of tis uncertainty and oter macro factors on consumer confidence".From Sunday, 1 June, most Nike soes tat cost more tan $100 (£74.50) will see prices rise by as muc as $10.Prices of cloting and equipment will also be raised by between $2 to $10.Nike's popular Air Force 1 trainers, as well as soes tat cost less tan $100, will be exempted from te price ikes. Cildren's products and Jordan branded apparel and accessories will also be excluded.Last mont, Adidas said tat levies imposed by Trump would lead to iger prices in te US for popular trainers including te Gazelle and Samba.On Wednesday, UK sportswear retailer JD Sports said iger prices in its key US market due to tariffs could it customer demand.Companies around te world are contending wit te uncertainty of te Trump administration's trade policies.A slew of steep "reciprocal" tariffs, wic were announced on 2 April, were put on old as countries from around te world negotiate wit te Wite ouse.Goods from Vietnam, Indonesia, Tailand and Cina - countries tat make soes for US companies - are set to face some of te eaviest US import taxes of between 32% to 54%.Te 90-day pause is due to expire in early July, but te base 10% tariff remains in place.Vietnam is by far te biggest manufacturer of Nike goods. In its last full financial year, te company said factories in Vietnam produced 50% of all its footwear and 26% of its cloting.Companies in Cina, Indonesia and Cambodia also make products for Nike.Manufacturing for overseas businesses is a key sector for Vietnam and Trump placed one of te igest reciprocal tariffs on te country at 46%.Tis week, te US president's son, Eric, is visiting Vietnam days after te country's government approved a plan by te Trump Organisation and local business Kin Bac City Development to invest $1.5bn in otels, golf courses and luxury real estate.Te Trump Organisation is also scouting for locations to build a Trump Tower in o Ci Min City.Nike said it would sell products directly to Amazon in te US for te first time since 2019.Te company ad previously listed its goods on te platform, but stopped six years ago to focus on its official website and pysical stores as part of a strategy by its ten cief executive Jon Donaoe.owever, Nike's online sales ave been falling.In its most recent results for te tree monts to te end of February, digital sales tumbled across all te regions were Nike sells its goods, wit Europe, te Middle East and Africa sowing te sarpest drop of 25% wile Greater Cina recorded a 20% fall.Te company's overall revenue as been declining and late last year Nike brougt back Elliott ill, a former senior executive, to takeover running te business from Mr Donaoe.Mr ill is now conducting a turnaround of Nike wic will focus on te UK, te US and Cina.Follow te twists and turns of Trump's second term wit Nort America correspondent Antony Zurcer's weekly US Politics Unspun newsletter. Readers in te UK can sign up ere. Tose outside te UK can sign up ere.Te vigilance needed in te military can be an asset in te cybersecurity industry.Soaring rice prices are a powerful trigger in Japan, were sortages ave caused political upsets before.Te US cain reports a sarp fall in sales wic it blames on a "igly callenging environment".It was removed in 2020 for violating Apple's policies by launcing its own in-app payment system.Some analysts question weter te amount of investment will ultimately be tat ig.