Adidas to Increase Prices Due to New Tariffs in the USA

• Adidas expects an expense of 200 million euros due to new tariffs.
• The company reported increased sales and profits.
• The impact of tariffs on consumer demand remains uncertain.

Reuters

The company Adidas announced that new tariffs in the USA will lead to additional expenses amounting to 200 million euros ($231 million) in the second half of the year. Adidas's CEO, Bjorn Gulden, stated that the new tariffs have already negatively impacted the results of the second quarter, which resulted in a decrease in demand.

Research has shown that most of Adidas's production is made in Asia, particularly in Vietnam and Indonesia, which are subject to new tariffs. Accordingly, due to the new trade agreements, products from Vietnam will incur a 20% tariff, and from Indonesia - 19%. This means that American companies importing Adidas products will be forced to pay additional tariffs.

Despite the negative impact of tariffs, Adidas reported an increase in sales by 7.3% to 12.1 billion euros in the first half of the year, while profit before tax rose from 549 million euros to 1 billion euros.

The company also noted that footwear sales increased by 9% in the second quarter, while apparel revenue increased by 17%. However, Gulden emphasized that uncertainty regarding future tariffs may affect consumer demand.

Overall, Adidas continues to face challenges due to changes in the trade policy in the USA, but the company is adapting to new conditions, including through price increases for its products.

Tags: USA/Economy