Adidas, the global sportswear leader, has cautioned that US import tariffs enacted by President Donald Trump are expected to result in higher retail prices for popular sneakers such as the Gazelle and Samba ranges.
“Since it is currently not feasible for us to manufacture most of our merchandise within the US, the increased tariffs will inevitably drive up the costs for all our products sold in the US market,” CEO Bjorn Gulden stated on Tuesday.
The apparel industry is among those most heavily impacted by tariffs, as many manufacturers rely on labor from countries like China and Vietnam, both of which have seen significant US tariff hikes.
Adidas declined to specify the extent of any potential price increases but confirmed that the ongoing trade dispute has forced the company to halt a planned improvement to its financial guidance.
Mr Gulden noted that the precise effect of the tariffs on costs remains “impossible to quantify,” and the implications for consumer demand are also still unclear.
“With uncertainty surrounding the outcome of US trade discussions with exporting nations, the final tariff levels remain unknown, making it impossible for us to make definitive strategic decisions at this time,” he added.
Vietnam, now a central hub for global athletic shoe production, faces some of the steepest US tariffs. Major brands such as Nike, Puma, and Adidas all operate significant manufacturing sites across Southeast Asia.
While the US administration introduced tariffs to encourage a return of manufacturing jobs to America, companies like Adidas argue that US facilities lack the advanced machinery and expertise needed for sports shoe production.
Tariffs on Vietnamese imports can reach 46%; however, these have been temporarily suspended for 90 days as negotiations continue between countries.
During a conference call, Mr Gulden revealed that Adidas increased export volumes to the US to minimize anticipated tariff effects, and redirected Chinese-made products intended for America to other international markets.
Adidas recently reported preliminary figures showing profit nearly doubling to €610 million (£519 million) in the year’s first quarter, representing its strongest performance for this period on record.
The company’s iconic Sambas and its new Taekwondo trainers enjoyed notable demand, with sales rising across all regions except the US.
“Ironically, our reduced reliance on the US market has become a relative advantage compared to perhaps more US-centric companies,” Gulden reflected, apparently referencing competitor Nike.
Adidas shares remained steady during early trading in Frankfurt on Tuesday, having recouped much of their earlier losses after certain tariff announcements were recently postponed.
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