Sportswear giant Adidas warned that import tax imposed by President Donald Trump would cause U.S. prices to rise in popular coaches, including gazelle and Samba.
"Since we are currently unable to produce almost any of our products in the U.S., these higher tariffs will ultimately bring higher costs to all products in the U.S. market," CEO Bjorn Gulden said on Tuesday.
Clothing manufacturers are the biggest hit by tariffs for businesses as they work from countries such as China and Vietnam, which face huge U.S. levies.
Adidas did not comment on the price increase, but said the trade war "stopped" the escalation of its financial outlook.
Mr. Gulden said that “it is currently impossible to quantify” the increase in costs due to tariffs or conclude what impact this may have on consumers’ demand for our products”.
He added: "Given the uncertainty of negotiations between the United States and different exporters, we don't know what the final tariff will be. Therefore, we can't make any "final" decisions about what to do."
Vietnam has become a global center for sports shoes manufacturing, and it has been subject to some of the most punishing U.S. tariffs. Nike, Puma and Adidas have large factory sales stores in Southeast Asia.
Trump has proposed tariffs to bring manufacturing back to our shores. However, companies such as Adidas say the United States lacks factories with specialized equipment to give running shoes and workers the knowledge to run them.
Vietnam faces some of the highest tariffs, accounting for 46%, although these levies are currently suspended for 90 days as countries try to negotiate better deals.
Gulden said in a conference call with reporters that Adidas exported more products to the United States to mitigate the impact of tariffs. He said the company has also relocated products made in China in place of other markets.
The company reported preliminary results last week, showing that its profits nearly doubled in the first three months of the year to 610 million euros (£519 million), marking the strongest sales performance in its company's history.
Demand for Sambas and its newly launched Taekwondo trainers is growing in all markets outside the United States.
"Ironically, it's an advantage to rely less on the U.S. right now compared to companies that may be more American," he said.
Adidas stock remained largely unchanged in early Tuesday’s Frankfurt trading. The stock has recovered most of its losses after some tariffs announced earlier this month were partially suspended.