Add sneakers to the growing list of things that will be more expensive.
Adidas warned Tuesday that President Donald Trump's radical rates could increase the costs of all of his products in the United States, because the company remains depends on imports to store American shelves.
“As we cannot currently produce our products in the United States almost, these higher prices will eventually be higher for all our products for the American market,” said CEO Bjørn Gulden.
The warning came alongside the Adidas first quarter profits report, which has shown significant momentum: revenues increased by 13% on a neutral basis to around 7 million dollars, and profits have more than doubled at around $ 495 million. The shoes have led two -digit digital growth in all regions and categories.
But Gulden said that this momentum may not last if the prices persist. Although the company has moved a certain manufacture outside of China, it remains strongly dependent on the imports of the countries exposed to the prices.
“In a” normal world “,” he said, “we would have increased our prospects for the whole year both for income and operating profit.”
But “uncertainty about American prices has currently put an end to this,” he added.
In early April, Trump announced a series of stiff on dozens of countries, including long -standing allies, but then made a highest break For 90 days, maintain a reference rate of 10% in place for most countries and slaps 145% of prices on most imports from China.
Adidas is not the only brand for the offender for the benefits.
Companies like Target, Shein, Ford, Volkswagen and Best Buy have all announced or reported price increases related to prices.
Other companies, including GM and UPS, have drawn their financial guidelines, citing the uncertainty caused by Trump's prices. ChipotlePepsico and luxury giant LvmhAs for him, warned of sales in the second quarter.
The secretary of the Treasury, Scott Bessent, defended the prices in a Sunday interview with ABC, describing the changing tariff plans designed to create “strategic uncertainty” and give the effect of American leverage in global trade negotiations.
However, if the prices stick, buyers will be the ones who will place the bill.
