TOP BIT
Even his sneakers are getting more expensive…
Adidas warns of massive extra costs from new US tariffs on goods from Asia. The sportswear brand makes almost half its products in Vietnam and Indonesia and anticipates roughly $220 million in added expenses for H2 2025 alone. The company is now considering raising prices in the US market. Nike and Puma are also affected.
The Details
💸 Tariff Shock at Adidas: Goods from Vietnam and Indonesia now face duties of up to 46 percent. Adidas plans to hike prices on new models.
👟 Consumer Impact: Nike and Puma also expect billions in added costs. Procter & Gamble has already raised prices on 25 percent of its US products.
📉 Market Reaction: Adidas shares plunged 11 percent on the news—the worst daily drop since April. European carmakers like Mercedes and Porsche also reported declines.
📦 Production Shift Challenging: Adidas and peers stress that local US manufacturing isn’t economically viable. The tariffs therefore hit retail prices directly.
Why It Matters
Rising Price Pressure: The new tariffs could stoke US inflation again.
Growing Protectionism: US trade policy strains global supply chains.
Asia Loses Its Edge: Vietnam and Indonesia have long been safe production hubs—no longer.
European Brands Under Pressure: Companies like Adidas must rethink strategies to stay competitive in the US.
Background
Nearly all shoes sold in the US are imports. Adidas sources 30 percent of its footwear from Vietnam and 23 percent from Indonesia. Before Trump’s announcement, US duties on shoe imports already ran up to 26 percent; the new measures push them above 45 percent in many cases. CEO Bjørn Gulden has warned that higher prices could dampen US consumer demand. Adidas is now testing how far it can raise prices without triggering a sales slump.
đź“ŠÂ All Data & Details:Â Nikkei, Reuters, Axios
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