Adidas considers price hike for US products due to Trump tariffs.

Adidas may increase product prices in the US due to Trump tariffs, but the company has not specified by how much. Adidas has already reduced China-made products shipped to the US to a minimum and is uncertain about future tariffs. The company's global trade dispute is preventing it from raising its full-year outlook despite a substantial increase in first-quarter profits.

Sportswear giant Adidas has warned that it will likely raise prices on all its U.S. products due to President Donald Trump's tariffs. The company, known for iconic sneakers like the Superstar, Sambas, and Gazelles, has been grappling with the impact of the global trade dispute, which is preventing it from providing a full-year outlook despite strong first-quarter profits.

Adidas stated that higher tariffs will eventually lead to higher costs for its U.S. products. The company is somewhat exposed to White House tariffs on Beijing, currently at an effective rate of 145%, but has already reduced exports of its China-made products to the U.S. to a minimum. The biggest impact, however, is coming from the general increase in U.S. tariffs on all other countries, which are largely held at 10% while trade negotiations take place [1].

Given the uncertainty around the negotiations between the U.S. and different exporting countries, Adidas cannot quantify the final tariffs or conclude what impact this could have on consumer demand. The company is currently unable to produce almost any of its products in the U.S. and relies on factories in countries like Vietnam and Cambodia, which are facing U.S. tariffs upwards of 40% [2].

Similar challenges are being faced by other retail businesses serving the U.S. market. For instance, discount Chinese retail platforms Temu and Shein have raised prices for U.S. customers due to the 145% tariff on Chinese goods and the elimination of the "de minimis" exemption [3]. These price hikes are likely to have a significant impact on consumer spending and market dynamics.

Adidas' shares were largely unchanged in early Frankfurt trading on Tuesday, despite the warning. The company's strong first-quarter results, marked by a 13% revenue surge and an 82% jump in operating profit, have been overshadowed by the uncertainty surrounding U.S. tariffs [4].

The long-term impacts of these tariffs on consumer behavior and retailer profitability remain uncertain. As companies navigate the challenges posed by rising tariffs, investors and financial professionals should closely monitor the situation and assess the potential implications for the retail sector.

References:
[1] https://www.cnbc.com/2025/04/29/adidas-warns-it-will-raise-prices-on-all-us-products-due-to-tariffs.html
[2] https://www.thailand-business-news.com/video/214268-temu-and-shein-increase-prices-due-to-trump-tariffs
[3] https://www.bbc.com/news/articles/c93g20z7943o
[4] https://www.ainvest.com/news/adidas-faces-tariff-headwinds-crossroads-global-growth-2504/