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Adidas to raise prices as US tariffs add €200 million to costs

by July 30, 2025
July 30, 2025
Adidas to raise prices as US tariffs add €200 million to costs

Adidas has confirmed it will raise prices for customers in the United States after warning that new tariffs imposed by the Trump administration will add an additional €200 million (£173 million) to its costs this year.

The German sportswear giant said nearly half its products are manufactured in Vietnam and Indonesia, which were both recently targeted in new trade agreements that impose 20% and 19% tariffs respectively on goods shipped to the US. The company warned that these tariffs will directly increase the cost of Adidas products in the American market.

“The tariffs will directly increase the cost of our products for the US with up to €200 million during the rest of the year,” said Bjorn Gulden, chief executive of Adidas. “We still don’t know what the demand impact will be if these tariffs cause major inflation.”

The impact of tariffs is already being felt by Adidas, which joins a growing list of global companies forced to pass higher supply chain costs onto consumers. Nike, one of Adidas’s key rivals, raised prices in June and warned the tariffs could add $1 billion (£730 million) to its own costs.

Adidas, known for popular trainer lines like the Gazelle and Samba, has said it is unable to produce most of its products in the US, making it particularly vulnerable to Washington’s shift toward protectionist trade policies. The company’s reliance on Asian supply chains—27% of Adidas products are made in Vietnam and 19% in Indonesia—has left it heavily exposed to the new levies.

Despite the tariff pressures, Adidas reported a strong first half, with sales rising 7.3% to €12.1 billion and pre-tax profits nearly doubling from €549 million to €1 billion. Footwear sales increased by 9%, while clothing revenue surged 17% in the second quarter.

The trade backdrop has grown more tense in recent weeks, with President Trump sealing a 15% tariff deal with the European Union, covering all imports, including cars. The agreement, which will take effect on August 1, is seen as a step back from Trump’s earlier threats of 30% tariffs on EU goods, but has still drawn criticism from European leaders.

Germany’s Chancellor Friedrich Merz has warned that the deal could cause “considerable damage” to Germany’s economy and ultimately harm the US as well.

This week, German carmakers Mercedes-Benz and Porsche outlined the financial toll of Trump’s trade measures. Mercedes said it expects €420 million in tariff-related costs this year, contributing to a 70% drop in second-quarter profits, while Porsche said it had raised prices by up to 3.6% to absorb the added expense.

Aston Martin and Stellantis have also cited US tariffs as significant headwinds. Stellantis, which owns brands including Vauxhall, Jeep and Peugeot, estimated that tariffs have already cost the group €300 million.

With Adidas now raising prices and more companies expected to follow, the broader impact of US trade policy is becoming increasingly visible—not just for businesses managing squeezed margins, but for consumers facing rising costs on everything from trainers to luxury vehicles.

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Adidas to raise prices as US tariffs add €200 million to costs

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