German sportswear giant Adidas said it would raise prices for American customers, and warned that U.S. tariffs will cost the company €200 million ($228 million) in the second half of 2025.
The two largest source countries for Adidas goods are Vietnam, which makes 27% of its products, and Indonesia, which makes 19%. President Donald Trump slapped a 20% duty on U.S. imports from Vietnam, along with a 40% levy on goods deemed to be transshipped, aimed at discouraging goods originating in China. Indonesia is still negotiating with the U.S. administration, but its exports to the U.S. look likely to attract a levy of 19%.
According to BBC News, Adidas chief executive Bjorn Gulden, while announcing its latest results July 30, said the tariffs "will directly increase the cost of our products for the U.S."
He added that the company still does not know what the impact will be on customer demand "should all these tariffs cause major inflation."
The sportswear giant, which makes the popular Gazelle and Samba trainers, had previously warned that it cannot produce most of its products in the U.S.
Its rival Nike in May also said it would raise prices on some trainers and clothing for U.S. customers from June, and later warned the tariffs could add about $1 billion to its costs.
Read More: Nike Faces $1B in Added Costs from Tariffs
