Adidas has announced it will raise prices for consumers in the United States as it braces for a €200 million ($217 million) increase in costs this year, following new tariffs imposed by the Trump administration.
The German sportswear giant, which manufactures a significant portion of its products in Asia, said the new levies targeting Vietnam and Indonesia—where nearly half of its goods are made—will directly impact the cost of supplying the American market. Vietnam and Indonesia were hit with 20% and 19% tariffs, respectively, under recently concluded trade deals with Washington.
“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 Adidas CEO Bjorn Gulden. “We still don’t know what the demand impact will be if these tariffs cause major inflation.”
Adidas is the latest multinational firm to confirm that it will pass higher supply chain costs onto consumers. Nike, its main rival, raised prices in June and warned that tariffs could add as much as $1 billion to its expenses in 2025.
Adidas, known for best-selling footwear lines such as the Gazelle, Samba, and Ultraboost, has limited manufacturing capacity in the US. Its dependence on Asian supply chains—27% of its products are produced in Vietnam and 19% in Indonesia—leaves it especially exposed to the trade policy shift under President Trump.
Despite the headwinds, Adidas reported strong financial performance in the first half of the year. Sales rose 7.3% to €12.1 billion, while pre-tax profits nearly doubled from €549 million to €1 billion. Footwear sales were up 9%, and apparel revenues jumped 17% in the second quarter alone.
Meanwhile, broader concerns over the economic fallout of Trump’s escalating tariff regime continue to mount. A new 15% tariff agreement between the US and the European Union, set to take effect on August 1, has drawn criticism despite averting a previously threatened 30% levy.
German Chancellor Friedrich Merz warned the deal could cause “considerable damage” to Germany’s economy, as major exporters reel from the financial strain. Mercedes-Benz and Porsche both reported tariff-related losses this week. Mercedes expects €420 million in extra costs, contributing to a 70% plunge in Q2 profits, while Porsche has already increased prices by up to 3.6% to mitigate the impact.
Stellantis and Aston Martin also cited tariffs as significant headwinds, with Stellantis estimating a €300 million toll on its global operations.
As major brands adjust pricing and re-evaluate supply chains, the ripple effects of US trade policy are increasingly being felt—not just in corporate boardrooms, but at the checkout counter for American consumers.
