Adidas to raise prices as US tariffs costs rise by €200m
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Adidas braces for €200m blow from US tariffs, plans to raise American prices
Adidas to Hike US Prices as Tariffs Add €200 Million in Extra Costs
OMEGA TV UK — Global sportswear powerhouse Adidas is preparing to increase prices in the United States, citing a projected €200 million surge in costs due to newly imposed tariffs on goods from Asia.
The German brand, known for its iconic Gazelle and Samba trainers, disclosed the impact in its latest financial report. CEO Bjorn Gulden confirmed that the US-imposed trade levies will significantly raise the cost of Adidas products sold in America. “These tariffs will directly increase the cost of our goods in the US,” he stated, warning that the company has yet to gauge how inflation might affect consumer demand.
Heavy Dependence on Asia Fuels Cost Spike
Adidas sources nearly half of its merchandise from Vietnam and Indonesia—two countries that recently signed trade agreements with the US, resulting in stiff tariffs. Vietnam accounts for 27% of Adidas’ production, while Indonesia contributes 19%. As part of the new trade terms, US authorities introduced a 20% tariff on Vietnamese imports and 19% on Indonesian goods.
US importers handling Adidas products are now required to pay the additional fees, a burden likely to be passed on to consumers through higher retail prices.
Nike Also Feels the Pressure
Adidas isn’t alone in grappling with these financial headwinds. Competitor Nike had already raised prices in June and warned that tariffs could tack on an extra $1 billion (£730 million) to its yearly expenses.
Adidas, however, has limited options for relocating production to the US. “We cannot shift most of our manufacturing operations to the US,” Gulden admitted, reinforcing the brand’s reliance on offshore production.
Strong Sales Despite Tariff Threat
Despite the economic pressure, Adidas delivered strong performance figures. The company reported a 7.3% growth in sales during the first half of the year, reaching €12.1 billion. Pre-tax profits nearly doubled, soaring from €549 million to €1 billion. Between April and June, footwear sales climbed 9%, and apparel revenue surged by 17%.
Trump’s Tariff Agenda Escalates Global Trade Tensions
The US government, under former President Donald Trump, aggressively expanded its tariff regime to encourage domestic manufacturing. Earlier this week, Washington sealed a controversial trade pact with the European Union, imposing a 15% tariff on all imports, including vehicles, ahead of an August 1 deadline. Trump had earlier floated a 30% tariff, sparking resistance from major EU nations.
Germany Pushes Back
German Chancellor Friedrich Merz criticized the deal, warning it could inflict severe harm on both US and European economies. Leading German automakers are already feeling the squeeze. Mercedes-Benz cited the US tariffs as the main reason for a nearly 70% drop in its second-quarter profit, expecting the levies to cost around €420 million this year. Porsche has increased prices by up to 3.6% to cover the shortfall.
Meanwhile, British carmaker Aston Martin cautioned that its full-year profits may be marginal due to the ongoing tariff complications.
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