Arizona Gov. Doug Ducey said Tuesday in a tweet that he will order the state's commerce authority to withdraw all financial incentive dollars for Nike to locate in the state after the shoe company said it's dropping its Betsy Ross American flag sneakers.

Nike has been planning to build a manufacturing plant on metro Phoenix's west side, which is expected to bring 500 jobs to the area, The Arizona Republic reported Monday. The commerce authority had promised roughly $1 million in incentives, the paper wrote. In addition, The Goodyear City Council on Monday had agreed to waive up to nearly $1 million in review and permit fees and reimburse up to $1 million for the jobs it will create, the paper reported. The Goodyear City Council is not under the discretion of Gov. Ducey.

On Monday night, Nike said it was pulling the sneakers, which featured an early American flag designed by Betsy Ross in celebration of the July Fourth holiday. The decision followed a complaint from former NFL football player Colin Kaepernick, who pointed to the flag's use during a period of slavery, The Wall Street Journal reported Monday. There also have been reports of the flag's use by extremist groups, according to the paper.

"It is a shameful retreat for the company. American businesses should be proud of our country's history, not abandoning it," Ducey wrote on Twitter.

"Nike has made its decision, and now we're making ours. I've ordered the Arizona Commerce Authority to withdraw all financial incentive dollars under their discretion that the State was providing for the company to locate here."

Tweet