Adidas has announced that recent US tariffs will raise its costs by as much as €200 million and confirmed it will pass those costs on to American customers through price hikes.
Chief Executive Bjorn Gulden said the tariffs “will directly increase the cost of our products for the US,” as nearly half of Adidas products are made in Asian countries now facing elevated import duties. “We don’t yet know what the impact will be on customer demand should all these tariffs cause major inflation,” he added.
The United States recently imposed a 20% tariff on goods from Vietnam and a 19% tariff on Indonesian-made products two countries that manufacture a combined 46% of Adidas merchandise. Adidas has previously stated that it cannot move most of its production to the US.
The German sportswear giant joins rival Nike in raising prices for American buyers, with Nike warning in May that tariffs could add about $1 billion to its costs.
Despite the financial pressure, Adidas posted strong results for the first half of the year, reporting a 7.3% rise in sales to €12.1 billion. Pre-tax profits jumped from €549 million to €1 billion, with footwear sales up 9% and clothing revenue growing by 17% in the second quarter.
Erizia Rubyjeana
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