Nike is facing a proposed class action lawsuit from consumers who claim the sportswear giant failed to commit to refunding tariff-related costs passed on through higher prices.

The lawsuit, filed in federal court in Portland, Oregon, alleges that Nike raised prices on some footwear by $5 to $10 and some apparel by $2 to $10 to offset the cost of tariffs imposed under President Donald Trump’s International Emergency Economic Powers Act measures.

Consumers bringing the case argue that Nike could receive “significant” refunds after the US Supreme Court ruled in February that the president did not have the authority to impose certain tariffs under the Act.

Nike has previously said it paid around $1bn in tariffs on imported goods as a result of the measures.

The complaint alleges that the sportswear giant has made “no legally binding commitment” to return any tariff-related overcharges to shoppers.

“Unless restrained by this court, Nike stands to recover the same tariff payments twice — once from consumers through higher prices and again from the federal government through tariff refunds,” the complaint states.

Nike has not yet commented publicly on the lawsuit.

The case places the retailer among a growing group of major businesses facing legal action over claims they have failed to pass tariff refunds back to consumers. Costco and Ray-Ban owner EssilorLuxottica are among the companies to have been hit with similar lawsuits.

More than 2,000 companies have filed claims in the US Court of International Trade seeking to recover tariffs paid on imported goods.

Nike told investors in March that its fiscal quarter ending in August 2026 was expected to be the final period in which tariffs would remain a material year-on-year headwind to gross margin.

The legal challenge comes as Nike continues to reshape its business. The retailer recently confirmed plans to cut around 1,400 roles from its Global Operations team, with its technology division across North America, Asia and Europe understood to be among the areas most affected.

The cuts represent just under two per cent of Nike’s global workforce as the group continues efforts to streamline its operations and reset growth.