Adidas to raise prices as US tariff costs are rising by € 200 million

Adidas warned that US tariffs would cost the German sportswear giant another 200 million euros (£ 173 million) and confirmed that it would raise prices for US customers.

Almost half of the company’s products are manufactured in Asian countries, which have recently agreed trade deals with the United States.

By announcing its latest results, Adidas Bjorn Gulden CEO said tariffs “will directly increase the price of our US products.”

He acknowledged that the company still did not know what the impact on customer demand would be, “if all these tariffs cause great inflation.”

The two largest sides of the sources for Adidas goods are Vietnam, which makes 27% of the products of the Sportswear and Indonesia, which makes 19%.

Earlier this month, the United States reached commercial deals with both countries, agreeing to impose a 20% tariff of Vietnam goods and a 19% tariff for products manufactured in Indonesia.

US companies that supply Adidas to sell in America have to pay the tariff.

Giant Sportswear, which makes the popular Gazelle and Samba coaches, had previously warned that he could not produce most of his products in the United States.

His rival Nike in May also said he would raise the prices of some trainers and clothing for US clients from June, and later warned that tariffs could Add about $ 1 billion (£ 730 million) to your costsS

Adidas Chief G -N Guardon said the US tariffs had already influenced the company, but he said the latest indications point to the tariffs directly, increasing “the price of our products for the United States by up to 200 million euros for the rest of the year.”

Despite tariffs, Adidas reported a 7.3% increase in sales to EUR 12.1 billion in the first half of the year, with a pre -tax profit jumped from EUR 549 million to EUR 1 billion.

Shoe sales increased by 9% in the second quarter of the year between April and June, while the revenue from clothing increased by 17%.

Trump has introduced higher tariffs for almost all of his world trading partners to encourage more companies to produce in the United States.

Earlier this week, Trump made a deal with the European Union (EU) to impose 15% rates for the entire import, including cars before August 1.

Previously, he threatened a 30% US Tariff for EU goods.

Although the possible tax is more icing, the main EU economies, including Germany, spoke against the deal.

German Chancellor Friedrich Mertz is that he would hit the US and cause “significant damage” to his country.

On Wednesday, two of the most famous car manufacturers in Germany have outlined how US tariffs have hit their business so far.

Mercedes-Benz said the tariffs that the company expects to cost him nearly € 420 million this year are largely to blame for the second quarter profit by nearly 70%.

A colleague with luxury cars, Porsche said she had increased prices by up to 3.6%to cover the cost of higher taxes on imports.

Meanwhile, in the UK, Aston Martin warned that his profits would be over this year due to the fee.

Earlier this month, Stellantis, which owns, including Vauxhall, Jeep and Peugeot, said Tariffs It had already cost 300 million eurosS