Sportswear giant Adidas has warned that import taxes imposed by President Donald Trump will lead to higher prices in the US for popular trainers like Gazelle and Samba. The company’s chief executive, Bjorn Gulden, stated that the tariffs will increase costs for all products sold in the US market due to the inability to produce most products domestically.
Tariffs have been a significant issue for clothing manufacturers, particularly those sourcing labor from countries like China and Vietnam, which face high levies from the US. Adidas did not provide details on how much prices would rise but stated that the trade war has negatively impacted its financial outlook.
The company’s global center of athletic shoe manufacturing is in Vietnam, where tariffs have been implemented at 46%. However, these levies are currently on hold for 90 days as countries negotiate better deals. Adidas had exported more products to the US before the tariffs took effect and re-routed some products made in China to other markets.
Despite the challenges posed by tariffs, Adidas reported a significant increase in profits, with sales growing in all markets outside the US. The company’s shares were largely unchanged after recovering from earlier losses due to partially suspended tariffs.
Source: https://www.bbc.com/news/articles/c93g20z7943o