Nike expects nearly $1B in IEEPA tariff refunds

An article from Dive Brief Nike expects nearly $1B in IEEPA tariff refunds The sportswear brand has collected more than $300 million in refunds for the invalidated levies, as of the quarter ending May 31.

Published July 8, 2026 Kelly Stroh Senior Editor Share Copy link Email / Print License Add us on Google The Nike logo is displayed at a Nike Well Collective store on Feb. 16, 2024, in Glendale, California.

While Nike is planning for additional tariff refunds during the fiscal year, it still expects duties to remain a headwind, according to EVP and CFO Matthew Friend. Mario Tama via Getty Images Listen to the article 3 min This audio is auto-generated. Please let us know if you have feedback.

Dive Brief: Nike expects to recover $986 million in tariff refunds for levies invalidated by the Supreme Court earlier this year, EVP and CFO Matthew Friend said during a June 30 earnings call.

As of the end of fiscal Q4 on May 31, Nike collected more than $300 million in returns for duties that were implemented last year under the International Emergency Economic Powers Act. As the company awaits the remaining funds, Friend said the company recorded the difference as accounts receivable.

The unplanned tariff-related refund benefit helped boost Nike’s gross margin to 49. 2% during the quarter, up from 40. 3% a year ago, according to Friend. Dive Insight: Tariffs will continue to be a dynamic cost headwind for the Nike this year, Friend said. The company’s forecasts account for a temporary 10% tariff U. S.

President Donald Trump implemented earlier this year. Following the tariff’s expected expiration in July, Nike is calculating in a potential 15% levy, Friend said, noting that the sneaker maker is gearing up for a turbulent market the rest of the year.

“The environment around us continues to be volatile, including evolving tariff policies, ongoing disruption in the Middle East, oil prices and other factors that could impact operating costs, consumer behavior, and weakness in store traffic and retail sales,” the CFO told analysts.

A year ago, Nike said it faced a $1 billion tariff hit and was strategically adjusting its operations to help offset the additional costs. As part of a multi-pronged tariff mitigation plan, Nike aimed to shift some manufacturing away from China and mix up its sourcing footprint.

The company also said it would raise prices while negotiating with retail partners and suppliers to combat the levies. Along with Nike, other companies have begun receiving IEEPA-related tariff refunds. McCormick & Co.

, for instance, received $28 million in tariff returns last quarter and expects to gain another $3 million in the second half of the fiscal year. The spice and ingredient company said it would use those funds to offset inflationary pressures, including costs driven by the Iran war. Ford Motor Co. , meanwhile, is projecting a payout of $1.

3 billion for tariffs paid between February 2025 to March 2026, while equipment manufacturer Deere has snagged a $272 million return. In total, U. S. Customs and Border Protection has completed $71. 06 billion in IEEPA tariff refunds as of June 29, according to a court filing last week.

Recommended Reading Nike fights $1B tariff hit with sourcing shifts, price hikes By Antone Gonsalves • July 2, 2025 Add us on Google Share Copy link Email / Print License Filed Under: Risk and Resilience, Procurement, Retail