Adidas has warned that it will raise prices for US customers after President Donald Trump’s imposed tariffs gave another major blow to the sportswear company.
According to Reuters, the German sportswear giant on Wednesday, July 30, alerted about a potential price hike in America after calculating the impact of US tariffs on its cost.
Adidas revealed that tariffs imposed by the Trump administration will add about €200 million ($231 million) to its costs in the second half of the year.
CEO Bjorn Gulden stated, “We still do not know what the final tariffs in the US will be. We also do not know what the indirect impact on consumer demand will be should all these tariffs cause major inflation."
“We will try to keep the prices on known models (stable) as long as we can and then do new pricing on products that haven't existed before,” he added.
Gulden declined to share any details about how much the price would increase for the US customer and told journalists during a conference call that the sportswear company will take the next step after tariffs are finalised.
Adidas shares dropped over 7%, adding to its 23% loss this year so far. Data compiled by LSEG also found that the company’s sales grew only 2.2% to €5.95 billion ($6.9 billion) in the first quarter, lower than analysts' expectations of €6.2 billion.
