Adidas has confirmed it will raise prices for US customers after warning that new American tariffs will increase its costs by an additional €200m (£173m) this year.
The German sportswear giant, which manufactures nearly half its products in Vietnam and Indonesia, is facing steep tariffs of 20% and 19% respectively on imports from both countries. These trade deals, recently struck by the US, are set to significantly inflate import costs for Adidas and similar global brands.
CEO Bjorn Gulden acknowledged the looming uncertainty around how US consumers will respond to the price increases. “The tariffs will directly increase the cost of our products for the US,” he said. “We still don’t know how customer demand will react if inflation surges as a result.”
Adidas, which produces iconic trainers like the Gazelle and Samba, had already cautioned that most of its products cannot be made domestically in the US. This leaves it especially vulnerable to protectionist trade policies.
Rival brand Nike also raised prices on selected products earlier this summer, estimating tariffs would add about $1bn to its costs.
Despite these pressures, Adidas reported strong first-half results. Sales rose by 7.3% to €12.1bn, and pre-tax profit nearly doubled—from €549m to €1bn. In the second quarter, footwear sales climbed 9% while apparel revenue jumped 17%.
Still, the looming impact of tariffs remains a serious challenge. Adidas expects the new costs to hit hard in the latter half of the year.
This comes amid a broader wave of US trade protectionism under former President Trump, who introduced sweeping tariff hikes aimed at boosting domestic manufacturing. New deals have already imposed a 15% tax on EU imports, with threats of up to 30% still on the table.
Major European firms including Mercedes-Benz, Porsche, Stellantis, and Aston Martin have all reported sharp profit hits and rising prices due to the levies.
Germany’s Chancellor Friedrich Merz has condemned the tariffs, warning they could cause “considerable damage” to transatlantic trade and his nation’s economy. As global trade tensions mount, brands like Adidas must now navigate rising costs, supply chain disruption, and unpredictable consumer responses—all while trying to protect profit margins and market share.
