A pair of fresh adidas kicks can light up your feet. Your wallet may feel the same.
The German footwear giant has made popular Samba Mountains, Stan Smiths and carbon-plated racing shoes run records around the world, and warned customers that U.S. tariffs on imports from China and other Asian countries will make the shoes more costly.
Even if the company announced better-than-expected first-quarter revenue, CEO Bjørn Gulden said Adidas will be costly in the U.S.
“Although we have reduced China’s exports to the U.S. to a minimum, we are exposed to the very high tariffs at some point,” Gulden said. “What’s worse for us is the general increase in U.S. tariffs across all countries of origin in the U.S..”
He added that Adidas is currently unable to make shoes in the United States
The tariff headache is not unique to Adidas, which has signed with painful rival Nike and other footwear brands to demand President Trump’s tariff exemption.
“Many companies that make affordable footwear for hard-working lower and middle-income families cannot absorb the tariff rates so high and cannot afford these costs,” the letter said.
“If reciprocity tariffs are not immediately reduced, they will simply close.”
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Like Adidas, other industry leaders are making public announcements that they have raised retail prices due to tariffs from the Trump administration.
Fashion-centric platforms Shein and Temu rely heavily on cheap Chinese imports, each posting statements about price increases on their website, which directly references the increased operating costs of tariffs.
President Trump puts forward tariffs to oppose unfair trade practices in China and other countries and encourages multinational corporations to build factories in the United States
"Bring your factory here," Treasury Secretary Scott Bessent said in a recent interview with Tucker Carlson.
“This is the best solution to stay away from the tariff wall. So move your factory here from China, Mexico, Vietnam – bring it here.”
But critics say it is almost impossible for companies to produce goods as cheaply as overseas - so for now, businesses and consumers will continue to pay for imports.
With the dangerous reality of rising prices in multiple product categories, consumers should consider proactive budgeting. Here are some ways.
1. Cut unnecessary expenses. View subscriptions (streaming services, gym memberships, unused apps) and cancel any non-essentials. Small decor quickly adds up, providing breathing room for the inevitable price increase.
2. Smart shopping. Like most footwear brands, adidas or Nike discounted older models can clear stock. Some brands, such as New Balance, have dedicated second-hand shoe stores online, and buyers can use models lightly for a lower price.
3. Buy locally. You can bypass the tariff hassle of local products and serve as a bonus to support your local economy. Visiting farmers’ markets, boutiques and local artisans often offer competitive pricing without importing tariffs for diets.
4. Pay close attention to the impact of tariffs on goods. Focus on news about tariffs and delay large purchases until prices are stable, if possible. For essentials, research provides alternative or general brands of similar quality at a lower cost.
5. Use technology to stay ahead. Use price tracking apps and browser extensions to discover transactions and compare prices between online retailers. Alerts of falling prices can help you rush to your savings, providing additional buffers for your monthly budget.
Adidas’ warning is just one example of how economic policy decisions ripples in your daily spending. Staying informed, smarter shopping and adjusting habits can help relieve some of the pain and even discover new ways to further expand your dollar.
This article provides information only and should not be construed as advice. It is without any warranty of any kind.