Adidas to raise prices as US tariffs cost €200m

Adidas warned that US tariffs will cost German sportswear giant € 200 million (£ 173 million) and confirmed that it would increase prices for American customers.

Almost half of the company products are made in Asian countries that have recently accepted trade agreements with the US.

Adidas CEO Bjorn Gulden, who explained the latest results, said tariffs “will directly increase the cost of our products for the United States”.

He admitted that the company still did not know what the impact on customer demand would be “All these tariffs cause great inflation”.

The two largest source countries for Adidas goods are Vietnam, which makes 27% of the products of the sportswear brand and Indonesia 19%.

At the beginning of this month, the United States agreed with both countries and agrees to give a 19% tariff to goods from Vietnam to goods and Indonesian products.

US companies sent to Adidas products have to pay the tariff.

Popular Gazelle and Samba instructors, sportswear giant, previously warned that most of its products in the United States.

Mr. Gulden said that the US tariffs already affect the company, but the latest demonstrations increases the cost of our products up to 200 million € for the rest of the year. “

On Wednesday, other companies summarized how US tariffs have hit their business so far.

Mercedes-Benz from Germany said that tariffs were accused of a large extent of about 70%of the second quarter profit.

Other German luxury car brand Porsche said that prices have increased up to 3.6% to meet the cost of higher import taxes.

At the beginning of this month, he sang Stellantis tariffs, including Vauxhall, Jeep and Peugeot. Already cost 300 million €.