Nike Faces Suit Over $1 Billion Tariff Refunds as Customers Seek Share of Price Hikes
Updated
Updated · Business Insider · May 12
Nike Faces Suit Over $1 Billion Tariff Refunds as Customers Seek Share of Price Hikes
10 articles · Updated · Business Insider · May 12
Seven Nike customers sued in federal court in Oregon on Friday, arguing they deserve part of any refund tied to tariffs the Supreme Court struck down in February.
US Customs and Border Protection told shippers last week refunds could start as early as Tuesday, prompting claims that companies may recover tariff costs twice if they already raised prices.
The Nike complaint says the company offset at least part of an expected $1 billion tariff hit by charging more for shoes and sportswear, then could also collect federal repayments.
Similar suits have hit Costco, FedEx and UPS; FedEx and UPS say they will return refunded tariff payments to customers, while Costco has said any refund would show up in lower prices and member value.
After a Supreme Court ruling, why are consumers suing brands like Nike and Costco for their tariff refunds?
Billions in tariff refunds are going to companies, but who really deserves the money: businesses or their customers?