This year marked the 40th anniversary of the release of the famous Air Jordan 1, which changed the sneaker industry. The Michael Jordan Brand topped $7 billion in 2024 sales—its highest yet. But looming U.S. tariffs on Vietnam production—up to 46%—threaten costs, so Brand executives are racing to adapt. To spill more details, two insiders reveal Jordan Brand’s contingency plan.

“The younger consumer probably doesn’t know who MJ is.” OJ Khoury, who works on Jordan Brand Creative, emphasized the storytelling aspect. “That’s the reality of when we’re talking about the narrative and trying to put (a collection) out into the world. Taking the sense of nostalgia, I feel like the younger generation really yearns for Y2K aesthetic. Leaning into the reality of internet lore.” He was not the only one who hyped the upcoming sale of Air Jordan ‘Rare Air’ 4.

“As soon as (MJ) saw this collection, he loved it. He loved the idea, he loved the vision. The whole team is geeked about this one.” Senior Manager Terrance Harvey on the “Rare Air” collection and shared the details that make it different from the regular AJ4. “Answer your question about just the imperfections on this one. One, you know, the different color matching, this is something that we necessarily wouldn’t do.”

The ‘Rare Air’ AJ4 ups the ante with removable Velcro tongue patches. Reportedly, only 25% of pairs will feature the text in gold lettering, making them super exclusive; the remaining pairs will display the text in white. That’s what Harvey shared in the video.

“So those people that have that, it’s kind of like that golden ticket pair. Keep it, it’s super exclusive. We didn’t make that many of them. So it’s always exciting to kind of have those pairs on to the market.” As per reports, the Air Jordan 4 “Rare Air” remains queued up for a July 26th release date, landing with a $215 retail price. The focus towards the younger demographic and catching their attention seems to be a move after the recent revelation about the price hike in the sneaker industry.

Exploring the details about the tariff hits on the Michael Jordan Brand

In April, the first announcement on the increased tariff on key manufacturers of sportswear and apparel, including Vietnam and Indonesia, hit the news. It was particularly bad for Nike and Michael Jordan since their factories operate in South Asia as well. These duties aren’t trivial. Vietnam was slammed with a 46 percent tariff rate, Cambodia got 49 percent, Bangladesh 37 percent, and Indonesia 32 percent. Now, the consumers will have to bear the brunt.

“The price of your Nikes is about to go up, but not by too much. So, Nike communicated to retailers this week that it’s hiking prices due to expected inflation. Sources tell Complex that Nike plans to increase prices between $2 and $10 starting in June.” The video from Complex explained how there will be an increase, but it should be only a moderate one. Plus, there were additional details as the prices on all kids’ footwear and apparel, and any footwear under $100 won’t be going up.

Nike CFO Matt Friend told investors in March they’re “navigating external factors” including tariffs, weighing whether to absorb the added $9–$15 per pair or pass it to customers—Complex sources say they plan a modest $2–$10 retail hike beginning June 1, targeting non-exempt styles like the AJ4. Senior execs are triaging factory footprints, exploring partial shifts back to China (30% tariff zone) or even the U.S., but any transition risks six-month delays and higher labor costs.

However, the AJ 4 sits outside of exemptions, so with a $215 MSRP, some fans bristled. Others seem to have read the report on how the cost to make an Air Jordan is less than $20. Only time will tell if this new strategy from Nike and MJ will pay off.