Adidas warns that US tariffs would spend another € 200 meter (£ 173M) to the German sportswear giant and confirmed that it would increase prices for American customers.
About half of the company’s products have been manufactured in Asian countries which have recently agreed to trade deals with the US.
Announcing its latest results, Byorn Gulden, Chief Executive Officer of Adidas, said Tariff “will directly increase the cost of our products for the US”.
He admitted that the company still did not know what the impact on the customer’s demand would be “What all these tariffs should cause major inflation”.
The two largest sources for adidas goods are the country Vietnam, which forms 27% sportswear brand products and Indonesia, which makes 19%.
Earlier this month, the US conducted a trade deal with both countries, which agreed to put 20% tariffs on goods from Vietnam and 19% tariff on Indonesian manufactured products.
To sell in the US, American companies ship in adidas products have to pay tariffs.
Sportswear veteran, which makes popular Gazel and Samba trainers, earlier warned that it could not produce most of its products in the US.
Mr. Gulden said that the American tariff has already influenced the company, but he said that “the cost of our products for the US grows up to € 200 meters to € 200 meters” directly for the latest signal tariffs “.
Despite the impact of the tariff, Adidas reported a 7.3% increase in sales in the first half of the year € 12.1BN, with pre-tax gains from € 549m to € 1bn.
Footwear sales increased by 9% in the second quarter of the year between April and June, while the revenue of clothing increased by 17%.
Trump introduced high tariffs to encourage more companies to manufacture more companies on all its global trading partners.
Earlier this week, Trump sealed a deal with the European Union (EU) to impose 15% tariffs on all imports, including cars before the August 1 deadline.
He has earlier threatened 30% US tariffs on goods from the European Union.
However, while the final tax is low, the major economies of the European Union including Germany have spoken against the deal.
The Chancellor of Germany Frederick Merz will hit the US and will “harm” their country.
On Wednesday, Germany’s two most famous car manufacturers underlined how the American tariff had killed its businesses so far.
Mercedes-Benz said the tariff, which the company hopes that its cost is approximately € 420 meters this year, was convicted for falling about 70%for the benefit of the second quarter on a large scale.
Fellow luxury car brand, Porsche, stated that its prices have increased by 3.6% to cover the cost of high import taxes.
Meanwhile, in the UK, Aston Martin warned that its profit would be marginally due to levy this year.
Earlier this month, Stelantis who are owners including Vaxhall, Jeep and Puzo It was already a cost of € 300 meters,
