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Adidas warns of price increases in the US after new tariffs: Additional costs of up to 200 million euros
2025-07-30 12:21:57 / EKONOMI&SOCIALE
German sportswear giant Adidas has announced that new customs tariffs imposed by the US are expected to cost the company up to 200 million euros (around £173 million), while confirming that prices for American consumers will increase.
Nearly half of Adidas' products are manufactured in Asian countries, which have recently signed trade agreements with the U.S. Two of the company's main sources of production are Vietnam and Indonesia, which represent 27% and 19% of the brand's total production, respectively.
Earlier this month, the US imposed tariffs of 20% on products from Vietnam and 19% on those made in Indonesia. These tariffs will be paid by US companies that import and sell Adidas products domestically.
Releasing the latest financial results, Adidas CEO Bjorn Gulden stated that the tariffs "will directly increase the cost of our products for the US market", adding that it is not yet clear how this will affect consumer demand in the event of significant inflation.
However, despite the tariff challenges, Adidas reported a 7.3% increase in sales in the first half of the year, reaching 12.1 billion euros, while pre-tax profit doubled from 549 million to 1 billion euros. In the second quarter (April-June), footwear sales rose by 9%, while apparel revenue by 17%.
Meanwhile, former US President Donald Trump, as part of his trade policy, has imposed high tariffs on almost all global trading partners to boost production within the US. This week, he reached an agreement with the European Union to impose 15% tariffs on all imports, including vehicles, ahead of an August 1 deadline.
Trump has previously threatened tariffs of up to 30% on EU goods, although the current deal has a lower rate. However, major EU countries, including Germany, have reacted against the move.
German Chancellor Friedrich Merz warned that these tariffs would severely damage not only the US, but also the German economy.
On Wednesday, two of Germany's most popular carmakers revealed the negative effects the tariffs have had on their business. Mercedes-Benz said the tariffs are expected to cost the company nearly 420 million euros this year, contributing significantly to a nearly 70% drop in second-quarter profits.
Meanwhile, Porsche announced price increases of up to 3.6% to cover the cost of import tariffs. In the UK, Aston Martin warned that profits for this year would be minimal due to the new taxes, while the Stellantis group, which owns the Vauxhall, Jeep and Peugeot brands, said the tariffs had cost it €300 million so far.
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