Tariffs push Adidas to raise prices on its U.S. products

Sportswear giant Adidas revealed Tuesday it will have to raise prices on all its U.S. products due to President Donald Trump’s tariffs. The firm did not disclose how much prices would rise due to uncertainty about tariff rates, with key suppliers in China, Vietnam, and Cambodia.

The sportswear manufacturer said it was currently unable to produce almost any of its products in the U.S. The firm said it uses factories in countries including Vietnam and Cambodia, which are facing U.S. levies upwards of 40% in the absence of a trade deal.

Adidas wants to raise prices on all U.S. products due to tariffs

Adidas warns it will raise prices on all U.S. products due to tariffs https://t.co/0Kn5klFNJ2

— Pradheep J. Shanker, M.D. (@neoavatara) April 29, 2025

Due to Trump’s global trade war, the German athletic apparel and footwear corporation Adidas said it would hike prices for all its U.S. products. The firm acknowledged it did not yet know by how much it would raise prices.

The sportswear manufacturer also noted that the global trade war prevented it from raising its full-year outlook despite a bumper increase in first-quarter profits. The firm argued that higher tariffs would eventually cause higher costs for all their products in the U.S. market.

The Germany-based company highlighted that it was “somewhat exposed” to White House tariffs on Beijing, which are currently at a rate of 145%. The firm also added that it had already reduced exports of its China-made products to the U.S. to a minimum. Adidas believes that the biggest impact was coming from the general increase in U.S. tariffs on all other countries, which are maintained at 10% as trade negotiations take place.

“Therefore, we cannot make any final decisions on what to do. Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products.”

-Adidas.

Adidas stated it would have raised its full-year outlook for revenues and operating profit due to a strong order book and positive brand sentiment if not for U.S. tariffs. The company instead reaffirmed its existing outlook but added that the “range of possible outcomes has increased.”

The firm’s CEO, Bjorn Gulden, said today that since Adidas cannot produce almost any of its products in the U.S., the higher tariffs will eventually cause higher costs for all its products in the U.S. market.

Tariffs force other major brands to raise prices

Wait, I thought it was the Chinese exporters who paid Trump’s tariffs!

So, how come e-commerce giant Shein is increasing the prices of everything that Americans are buying?

141% to 377%.

Biggest price hikes – from Bloomberg. pic.twitter.com/WzOpdm8mt7

— S.L. Kanthan (@Kanthan2030) April 27, 2025

Some economists said Trump’s tariffs and the uncertainty with his overall trade policy have led companies to raise prices on the goods they produce. Federal Reserve Chair Jerome Powell said on April 16 during a speech at the Economic Club of Chicago that the tariffs were larger than forecasters expected and larger than the Fed expected in its upside case.

Powell also noted that the Fed’s role is to ensure it will be a one-time price increase and not something that turns into an ongoing inflation process. He also acknowledged that the Fed is monitoring how much prices rise, which is still unclear.

Chinese retailers Shein and Temu released notices on April 16, both reading that their operating expenses had increased due to recent changes in global trade rules and tariffs. Shien said that it will be making price adjustments starting April 25.

Automaker Ford also said it plans to raise prices on new gas and electric cars starting in May unless the President gives the industry some relief from levies. Trump mentioned on April 14 that he was contemplating a temporary tariff exemption for autos to give manufacturers more time to move production to the U.S.

Volkswagen maintained that it would place an import fee on vehicles made outside the U.S. in response to Trump’s 25% tariff on car imports. The company’s North American CEO, Kjell Gruner, said the company would keep prices steady through the end of May, but they could increase in June.

Food company Conagra Brands CEO Sean Connolly highlighted that it may hike prices to offset the cost of tariffs on ingredients like cocoa, olive oil, palm oil, and a type of steel used for its canned products.

Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More