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Adidas, a German athletic apparel and footwear corporation, plans to increase prices for all its US products due to tariffs imposed by President Donald Trump's global trade policies. The company uses factories in countries like Vietnam and Cambodia, which face US levies of over 40% without a trade deal.
*Key Points:*
- *Reason for Price Hike*: Adidas cites higher tariffs as the reason for the price increase, which will affect all US products.
- *Uncertainty*: The company is unsure about the exact price increase, as it depends on the final tariffs imposed.
- *Impact*: Adidas expects higher costs due to tariffs, potentially affecting consumer demand.
- *Manufacturing*: The company currently can't produce most products in the US, making it vulnerable to tariffs on imports from countries like Vietnam and Cambodia.
- *Q1 Results*: Despite this, Adidas reported a 155% increase in net income in Q1 2025, beating forecasts ¹ ².
Adidas' CEO, Bjorn Gulden, stated that the company will try to navigate this uncertainty in a pragmatic and flexible way, aiming to minimize the impact on US retail partners and consumers ³.