Nike Inc. stood by its decision to pull its Fourth of July sneakers from stores, even as the move dragged it once again into America’s culture wars and drew criticism from conservative lawmakers claiming political correctness has gone too far.

“We regularly make business decisions to withdraw initiatives, products and services. Nike made the decision to halt distribution of the Air Max 1 Quick Strike Fourth of July based on concerns that it could unintentionally offend and detract from the nation’s patriotic holiday,” the company said in an emailed statement Tuesday.

Nike Inc. (NKE -0.53%) is yanking a U.S.A.-themed sneaker featuring an early American flag after NFL star-turned-activist Colin Kaepernick told the company it shouldn’t sell a shoe with a symbol that he and others consider offensive, according to people familiar with the matter.

The sneaker giant created the Air Max 1 USA in celebration of the July Fourth holiday, and it was slated to go on sale this week. The heel of the shoe featured a U.S. flag with 13 white stars in a circle, a design created during the American Revolution and commonly referred to as the Betsy Ross flag.

While no one seems to be saying that Ross herself was an evil racist, the fact that she lived—and allegedly sewed the iconic, 13-star flag associated with the American Revolution—during slaveholding times is apparently enough to ensure that she and her flag be canceled.

The controversy comes after Nike announced a new Fourth of July-themed sneaker, made in red, white, and blue materials and adorned on the heel with the Betsy Ross flag. After shipping the shoe—a version of Nike's popular Air Max 1—to stores, the company then abruptly called for their return.