BERLIN, Germany — Adidas has warned that newly imposed U.S. tariffs on Asian imports will cost the company an additional €200 million (£173 million) this year, forcing it to raise prices for customers in the American market.
The German sportswear giant, whose products like the iconic Samba and Gazelle trainers remain top-sellers globally, said the tariffs will “directly increase the cost of our products for the U.S.” and could significantly disrupt consumer demand.
“We still don’t know what the impact will be on customer demand should all these tariffs cause major inflation,” CEO Bjorn Gulden said on Wednesday as the company announced its latest financial results.
The new duties follow recent U.S. trade deals with Vietnam and Indonesia—Adidas’s two largest manufacturing bases, producing 27% and 19% of its global output respectively.
Under the agreements, the U.S. will impose a 20% tariff on Vietnamese imports and 19% on Indonesian-made goods, raising costs for companies shipping products into the American market.
Adidas, which does not produce the majority of its inventory in the U.S., has said it has little choice but to pass the increased costs on to consumers.
Rival Nike took similar steps in June, warning that tariffs could inflate its annual costs by as much as $1 billion (£730 million).
Despite the looming pressure from tariffs, Adidas posted a strong first-half performance, with sales climbing 7.3% year-on-year to €12.1 billion.
Pre-tax profit more than doubled from €549 million to €1 billion. In the second quarter alone, footwear sales rose 9%, while clothing sales jumped 17%.
Still, Gulden cautioned that the full-year outlook remains uncertain, with up to €200 million in tariff-related costs expected over the coming months.
Trump’s Tariff Strategy Raises Global Trade Tensions
The Adidas warning comes amid broader global concern over U.S. President Donald Trump’s aggressive tariff policy, which he argues is aimed at incentivizing companies to manufacture domestically.
Earlier this week, Trump struck a new trade deal with the European Union to impose 15% tariffs on all EU imports, including automobiles, ahead of the August 1 deadline.
Though lower than his earlier threat of 30%, the tariff rate still sparked backlash across Europe.
German Chancellor Friedrich Merz condemned the deal, warning it could do “considerable damage” to both U.S. and European economies.
Germany’s car industry is already feeling the pinch, with Mercedes-Benz reporting a 70% drop in Q2 profits and forecasting €420 million in annual losses linked to the tariffs.
Porsche has raised its U.S. prices by up to 3.6%, while Stellantis, the owner of Peugeot, Jeep and Vauxhall, said it has already absorbed a €300 million hit.
In the UK, luxury carmaker Aston Martin also warned that U.S. duties would leave its profit margins razor-thin this year.