Adidas warns it will raise prices on all U.S. products due to tariffs

Sportswear giant Adidas on Tuesday said that U.S. President Donald Trump’s tariffs would result in price hikes for all its U.S. products.

The company said it did not yet know by how much it would boost prices, also noting that the global trade dispute was preventing it from raising its full-year outlook despite a bumper increase in first-quarter profits.

“Higher tariffs will eventually cause higher costs for all our products for the US market,” Adidas said in a statement.

The company said it was “somewhat exposed” to White House tariffs on Beijing — currently at an effective rate of 145% — but that it had already reduced exports of its China-made products to the U.S. to a minimum. However, it said the biggest impact was coming from the general increase in U.S. tariffs on all other countries, which are largely held at 10% while trade negotiations take place.

“Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be,” the Adidas statement continued.

“Therefore, we cannot make any ‘final’ decisions on what to do. Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products.”

Adidas said it was currently unable to produce almost any of its products in the U.S.

The company, best-known for sneakers including Superstar, Sambas, Stan Smiths and Gazelles as well as sportswear, uses factories in countries including Vietnam and Cambodia — which are facing U.S. tariffs upwards of 40% in the absence of a trade deal.

A similar dilemma regarding price hikes and demand impact is facing almost all retail businesses which serve the U.S., from ultra-low-cost e-retailers like Temu to luxury giants such as Hermès.