Adidas Expects $140 Million Hit from Trump Tariffs

German sportswear giant Adidas forecasts that US President Donald Trump’s tariff measures will cost the company approximately 120 million euros ($140 million) for the year. According to Adidas boss Bjorn Gulden, the tariffs will have a significant impact, particularly in the final months of the year. The majority of Adidas’ output, over 90%, is produced in Asia, making firms that ship Adidas products to the US subject to substantial import levies.

North America accounted for more than 20% of Adidas’ sales last year, making the region a crucial market for the company. Although the projected cost of 120 million euros is lower than the initial warning of 200 million euros in July, Gulden notes that it is challenging to gauge the indirect impact of the tariffs as prices increase. The company is uncertain about how consumers in the US will react to the higher prices.

In the third quarter, North American sales declined by 5% to 1.3 billion euros, largely due to the tariffs and the discontinuation of the Yeezy sneaker line. The Yeezy line was produced in collaboration with rapper Ye, formerly known as Kanye West, but was canceled after he made antisemitic remarks on social media. To boost its presence in the US, Adidas is investing heavily in US college sports, aiming to close the gap with rival Nike.

Gulden acknowledges that catching up with Nike, the industry leader, is a significant challenge, but he believes that doubling Adidas’ business in the US is a realistic goal. Earlier this month, Adidas raised its full-year core profit forecast to 2 billion euros, up from a prior range of 1.7 to 1.8 billion euros. The company’s efforts to navigate the impact of the tariffs and expand its market share in the US will be closely watched in the coming months.