Customers shopped on April 4, 2025 at an Adidas store in Miami, Florida.
Joe Raedle | Getty Images
Sportswear giant Adidas Tariffs from U.S. President Donald Trump will cause prices to rise on all of his U.S. products, it said Tuesday.
The company said it was not known yet that it would raise prices, noting that despite first-quarter profits, global trade disputes prevented it from improving its full-year outlook.
"Higher tariffs will ultimately bring higher costs to all products on all our U.S. markets," Adidas said in a statement.
The company said it was "somewhat exposed" to Beijing's White House tariffs and is currently in contact at an effective rate of 145% -- but it has minimized exports of its Chinese-made products. However, it said the biggest impact comes from the widespread increase in U.S. tariffs on all other countries, which are primarily held by 10% at the time of trade negotiations.
“Given the uncertainty of negotiations between the United States and different exporting countries, we don’t know what the final tariff will be,” the Adidas statement continued.
“So we cannot make any 'final' decision on what to do. Due to the higher tariffs, rising costs will ultimately lead to price increases, not only in our industry, but currently cannot energy these fees or conclusions on what impact this has on consumers’ demand for our products.”
Adidas says it is currently impossible to produce almost all of its products in the United States
The company is best known for sneakers, including superstars, Sambas, Stan Smiths and Gazelles, and sportswear, using factories in countries including Vietnam and Cambodia, and the United States faces taxes as high as 40% without a trade deal.
Similar dilemmas regarding price increases and demand impacts also face almost all retail businesses serving the U.S., from ultra-low-cost e-retailers such as Temu to luxury giants such as Hermès.
Without the cloud of U.S. tariffs, Adidas will boost its full-year revenue and operating profit prospects due to strong order books and positive brand sentiment, the company said. Instead, it reiterates its existing prospects, but says “the range of possible outcomes has increased.”
In the results of largely pre-issuance, net revenue from continued operations jumped 155% in the first quarter to €436 million ($496.5 million), up from the €383 million forecast of €383 million. Net sales climbed 12.7% to 6.15 billion euros, or 9.9% as its operating margin rose by 3.8 percentage points.
The company eventually worked with controversial musician Ye, which shakes years of headaches, which cuts connections to anti-Semitic comments in 2022. It announced last month that it had sold its last batch of Yeezy shares.
Analysts at Deutsche Bank said in a note on Tuesday that despite the higher uncertainty, Adidas has made progress in various fields of "good printing".
“Adidas has seen double-digit sales growth in all regions and channels so far this year, with wholesale performing better than direct-to-consumer products,” said Mamta Valechha, Consumer Liberal analyst at Quilter Cheviot.
"Footwear continues to perform well, consumers choose lifestyle clothing, and performance categories continue to do well. Adidas hopes these trends continue in the face of economic uncertainty caused by U.S. tariffs, but unfortunately, we need to wait and see until the full impact is passed."