In brief
In a recent announcement, Adidas has confirmed plans to increase prices for its American customers as the company braces for an additional €200 million in tariffs costs. CEO Bjorn Gulden noted that nearly half of Adidas’s products are manufactured in Asia, which has recently entered trade agreements with the US, prompting the new tariffs. The increased costs come at a time when Adidas has reported a notable rise in sales during the first half of the fiscal year. Despite the looming price hikes, the sportswear giant is uncertain about the potential repercussions on consumer demand caused by possible inflation stemming from the tariffs. Adidas and its competitor Nike are both feeling the impact of the tariffs imposed under previous US trade policy, leading to increased prices across various product lines.
