Adidas to raise prices as US tariffs cost brand an additional €200m
Adidas has warned that US tariffs are set to raise the prices of its apparel, after the German brand revealed Trump's tax will add €200m (£173m) onto its costs.
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The price rises, which will impact customers purchasing Adidas products in the US, were confirmed by the brand's chief executive on Wednesday.
The German apparel brand, which is headquartered in Herzogenaurach, Bavaria, is set to see price rises across the board due to increased import costs put in place by the Trump administration.
Nearly half of the company's products are currently made in Asian countries, all of which have recently negotiated trade deals with the US.
The firm had previously warned that it would not be able to switch production to the US to avoid additional costs.
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Announced by Adidas' chief executive, Bjorn Gulden, the CEO told the press that tariffs "will directly increase the cost of our products for the US".
However, he conceded that the firm was still unaware of the full impact the price rises would have on customer demand "should all these tariffs cause major inflation".
Adidas' global revenue for 2024 was listed at €23 billion globally.
The sportswear brand's popularity has gone from strength-to-strength in recent months, with the popularity of trainers including the Samba and Gazelle.
Currently, Vietnam and Indonesia are the two greatest source countries for products produced by the brand, making 27% of the brand's sporting goods and 19% respectively.
July saw the US strike major trade deals with both Asian nations, with 20% tariffs placed on goods from Vietnam, while 19% tariff were imposed on all Indonesian-made products.
The tariffs mean that US companies that ship in Adidas products to sell in the US will have to absorb the cost of the tariff.
As such, prices for US customers are set to skyrocket on everyday items produced outside of the US.
It comes as competitor, Nike, warned customers that tariffs could add around $1bn (£730m) to its costs.
Despite the tariffs, Adidas reported a 7.3% increase in sales to €12.1bn in the first half of the year.
It announced that pre-tax profit had jumped from €549m to €1bn.