In a move that is expected to impact its U.S. customers, sportswear giant Adidas announced on Tuesday that it will raise prices on all its products sold in the country due to the tariffs imposed by President Donald Trump. The German company revealed that it has been unable to confirm how much prices will rise by, citing uncertainty about the tariff rates that will be applied to its key suppliers in China, Vietnam, and Cambodia.
Adidas' decision to increase prices comes as the company reported a significant jump in net income from continuing operations in the first quarter. According to the company's results, which were largely pre-released, net income soared 155% to 436 million euros ($496.5 million), exceeding the 383 million euros forecast in an LSEG-compiled consensus.
The move to raise prices is seen as a necessary step for Adidas to mitigate the impact of the tariffs, which it says will ultimately increase its costs. The company has been exploring ways to offset the increased costs, including renegotiating contracts with suppliers and implementing cost-saving measures. However, it is unclear how much of the cost increase will be passed on to consumers.
Adidas is not the only company to be affected by the tariffs. Many other major brands and retailers, including Nike, Under Armour, and Walmart, have also expressed concerns about the impact of the tariffs on their businesses. The tariffs, which were imposed in response to allegations of unfair trade practices by China, have led to a surge in prices for a range of goods, from clothing and footwear to electronics and household goods.