ADIDAS customers could see some changes soon when purchasing their favorite apparel and footwear.
While the adjustments have yet to be finalized, it follows considerations from other top businesses this year.
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CEO Bjorn Gulden noted the possibility of price increases on Adidas merchandise, partially as a result of global reciprocal tariffs implemented by the Trump administration, during a call with analysts on Wednesday.
Adidas projected that tariffs would add about $231 million to costs during the latter half of 2025.
Shares for the iconic brand dropped a whopping 11% recently, the worst since the tariff announcement in April.
For the year so far, losses have totaled about 26%, according to Reuters.
Gulden noted on the call that final tariff levels still remain uncertain, so it was difficult for Adidas to decide the correct path forward, especially considering the potential consumer response if they were to decide to increase prices.
“What I’m mostly worried about, to be honest, is not only the cost but what is going to be the consumer reaction in the market with all these price increases that I think will come not only in our sector, but in general in the US,” he said.
“Should we get mega inflation inflation in the US, things will happen on the demand side, then of course volumes will go down.”
Adidas, notably based out of Herzogenaurach, Germany, is still reviewing its pricing comprehensively and will decide which products could get price hikes stateside once tariffs are finalized, according to the CEO.
STAYING INVESTED
Gulden did not mention how much prices might increase.
“We will try to keep the prices on known models [stable] as long as we can, and then do new pricing on products that hasn’t existed before,” he told analysts.
Either way, Adidas still plans to navigate the tariffs and keep investing in the US market, as it accounts for about a fifth of sales.
“We want to grow and we are also willing to over-invest in the US to double the business,” Gulden said.
Adidas gets top sales from always-on-trend footwear like Samba and Gazelle designs, but footwear specifically is facing steep tariffs.
The Trump administration has a levy of 20% on most Vietnamese exports and a 18% tariff on goods out of Indonesia.
What items will be affected by the tariffs?
AMERICANS should prepare to see significant prices changes on everything from avocados to cars under President Donald Trump’s new global tariffs.
Here is a list of some of the everyday products that could see a massive price tag surge.
- Coffee
- Tea
- Bananas
- Foreign-made cars
- Sneakers
- Furniture and other home goods
- Pharmaceuticals
- Video games
- Clothing
- Toys
- Washers and dryers
- Avocados
- Housing materials
Both countries account for 30% and 20% of production for Adidas’ products in the United States.
Gulden noted that footwear imports had already faced tariffs before the additional levies, putting Vietnam at 46% and Indonesia 43%.
Adidas has already front-loaded shipments of products into the United States to beat the tariff impact.
Concerns over price increases as a result of tariffs have been ongoing for months.
FASHION FIASCO
Some fast fashion e-commerce brands like Shein and Temu notified customers of “price adjustments” in response this spring.
Shein and Temu were both founded in China, having similar operating structures but different assortments.
With trade tensions at the time between the United States and China having tariffs as high as 245%, per a White House fact sheet, the two companies seemingly braced for impact.
Except, tariffs have cooled off since to an average of about 51.1% on goods imported from China, offering consumers some relief.
Temu and Shein still account for about 17% of the discount shopping market in the United States, according to data from the Congressional Research Service.
A popular breakfast essential has also been among the top products to face huge hikes this year.
Even toy retailers like Mattel are promising to keep Barbies and Hot Wheels under $20 for Christmas this year after price spikes.
