Adidas to Raise U.S. Prices by Up to 40% Due to Trump-Era Tariffs

Adidas, the global sportswear giant, has announced that it will be forced to raise prices on all of its products sold in the United States due to the tariff policies implemented by Donald Trump. The company stated that the exact increase in prices is uncertain due to the fluctuating tariff rates and the fact that its primary suppliers are located in East Asia, Vietnam, and Cambodia.

Adidas emphasized that the higher tariffs will inevitably lead to increased costs for all of its products in the U.S. market. The company is currently facing a 14.5% tariff rate imposed by the White House, but the most significant impact comes from the general increase in tariffs on goods from all other countries, which are currently maintained at around 10% during trade negotiations.

Adidas highlighted the uncertainty surrounding the final tariff rates due to ongoing negotiations between the U.S. and various exporting countries. This uncertainty makes it difficult for the company to make definitive decisions about pricing. The cost increases resulting from higher tariffs will not only affect the sportswear industry but also have broader implications that are currently impossible to quantify. The impact on consumer demand for Adidas products remains unclear.

Adidas noted that it is virtually impossible for the company to produce any of its products domestically in the United States. The company is renowned for its iconic shoe lines such as "Superstar," "Sambas," "Stan Smiths," and "Gazelles," as well as its athletic apparel. Adidas operates factories in countries like Vietnam and Cambodia, which are currently facing tariffs exceeding 40% in the absence of trade agreements.

Adidas reported that its first-quarter net profit from continuing operations surged by 155% to 4.36 billion euros (approximately 4.965 billion USD), surpassing market expectations. The company attributed this significant increase to strong order books and positive brand sentiment. However, the ongoing trade disputes have prevented Adidas from raising its full-year revenue and operating profit forecasts.

Despite the challenges posed by tariffs, Adidas has managed to improve its profitability. The company has successfully distanced itself from the controversial rapper Ye (formerly known as Kanye West), with whom it had a long-standing partnership. In 2022, Adidas terminated its collaboration with Ye following his anti-Semitic remarks. The company recently announced the sale of its remaining inventory of "Yeezy" products.

Adidas expressed optimism about its future prospects, citing strong sales growth across all regions and channels. The company hopes that the positive trends in its athletic footwear and lifestyle apparel categories will continue despite the economic uncertainties caused by U.S. tariffs. However, a comprehensive assessment of the tariffs' impact on Adidas' business remains pending.