Adidas has warned Americans that tariffs on its products will lead to price hikes. Based in Germany, the company did not say how much those prices would increase.
The sportswear staple has key suppliers in countries affected by President Donald Trump’s recently announced tariffs, including China, Vietnam and Cambodia.
What did the company say specifically about future prices?
While first-quarter profits increased for Adidas, it warned of economic headwinds. It released a statement on Tuesday, April 29: “Higher tariffs will eventually cause higher costs for all our products for the U.S. market. “
CNBC reported that the company has already reduced exports of its merchandise made in China. Trump had previously announced a 145% tariff on Chinese goods coming into the U.S.
Adidas stated that the company is uncertain about the final levies.
“Therefore, we cannot make any final decisions on what we do. Cost increases due to higher tariffs will eventually cause price increases, but it is currently impossible to quantify these or to conclude what impact this could have on consumer demand for our products.”
Adidas
What are some of the Adidas staples?
Adidas is best known for its sneakers, including Stan Smith, Sambas and Superstar. It also sells a variety of sportswear. Many of these products are made in factories in Vietnam and Cambodia, which CNBC reported are subject to American tariffs in the 40% range.
The company said its brand and orders remain strong. Its net income increased by 155% in the first quarter, and sales increased by nearly 13%. Analysts said footwear and lifestyle clothing have been strong performers.
Where does Adidas make most of its products?
Adidas produces the majority of its products, with approximately 70% to 80% made in Asia and 20% to 30% in Europe, according to SourcingWise.com. Adidas said it does not manufacture nearly any of its products in the U.S.
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