Adidas has announced that it would hike prices for American clients and warned that US tariffs will cost the German sportswear giant an additional €200 million (£173 million). Asian nations that recently signed trade agreements with the US produce over half of the company’s goods.
Bjorn Gulden, the CEO of Adidas, stated that the tariffs “will directly increase the cost of our products for the US” when he announced the company’s most recent results. The impact on customer demand “should all these tariffs cause major inflation” is yet unknown, he said.
Vietnam and Indonesia are the two biggest suppliers of Adidas items, accounting for 27% and 19% of the sportswear brand’s output, respectively. The United States agreed to slap a 20% tax on Vietnamese goods and a 19% tariff on Indonesian goods as part of trade agreements with both nations earlier this month.
The massive sportswear company, which produces the well-known Gazelle and Samba sneakers, has already issued a warning that it is unable to manufacture the majority of its goods in the United States.
In May, its competitor Nike said that it will increase the cost of some sneakers and apparel for US consumers starting in June. The company then issued a warning that the tariffs may increase its expenses by around $1 billion (£730 million).
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