Adidas to increase prices as US tariffs increase by 200 million. EUR

Adidas warned that the US tariffs would cost a German giant sportswear another 200 million euros (173 million pounds) and confirmed that this will increase the prices of US customers.

Almost half of the company’s products are produced in Asian countries that have recently agreed with the US trade transactions.

Announcement of its latest results, Adidas Executive Director Björn Gulden said the tariffs “directly increase the cost of our products for the US.”

He acknowledged that the company still does not know what influence the customer’s demand will be “when all these tariffs cause serious inflation.”

The two largest sources for the Adidas – Vietnam countries, which is 27% of the brand’s sportswear products, and Indonesia, which is 19%.

Earlier this month, the United States concluded trade deals with both countries, agreeing to impose a 20% tariff for Vietnam goods and 19% for Indonesia’s products.

US companies sent to Adidas products for sale in America must pay the tariff.

The giant on sportswear, which makes popular gas and samba coaches, previously warned that most of its products in the US could not produce.

His Nike rival in May also stated that he will raise prices on some coaches and clothing for US clients since June and later warned that tariffs could Add about $ 1 billion (£ 730 million) to your expenses.

Boss Adidas G -Goulden said the US tariffs had already affected the company, but he said that the latest testimony indicates tariffs that directly increase the “cost of our products for the US with 200 million euros during the rest of the year.”

Despite the influence of tariffs, Adidas reported the increase of sales by 7.3% to 12.1 billion in the first half of the year, and the income before taxation jumping from 549 million euros to EUR 1 billion.

Shoe sales increased by 9% in the second quarter of April to June, while the clothes’ revenue increased by 17%.

Trump has introduced higher tariffs for almost all its world trading partners to encourage more companies to produce in the US.

Earlier this week, Trump made a transaction with the European Union (EU) to introduce 15% tariffs for all imports, including cars on the eve of August 1.

Earlier, it threatened 30% of the US tariffs for EU goods.

However, while a possible tax is below, the EU’s major economies, including Germany, opposed the deal.

German Chancellor Friedrich Merz will hit the United States and cause “significant damage” to his country.

On Wednesday, two famous German cars outlined how US tariffs still hit their business.

Mercedes-Benz said the tariffs that the company expects it to cost nearly 420 million this year, largely to blame that the profit in the second quarter decreased by almost 70%.

A luxurious Porsche’s associate said he had increased prices to 3.6%to cover the higher import tax cost.

Meanwhile, in the UK, Aston Martin warned that her profits would be marginal this year from the penalty.

Earlier this month Stelantis owns, including Vauxhall, Jeep and Peugeot, said the tariffs Already cost 300 million euros.