Adidas expects a $140 million hit from the tariff measures introduced by U.S. President Donald Trump. The German sportswear giant forecasts that the duties will cost the company about 120 million euros for the year, according to CEO Bjorn Gulden. He warned that the tariffs will have a particularly strong impact in the final months of the year.
More than 90 % of Adidas’s production takes place in Asia, so firms that ship its products to the United States are subject to substantial import levies. North America accounted for over 20 % of Adidas’s sales last year, making the region a crucial market. Although the projected cost of 120 million euros is lower than the initial warning of 200 million euros issued in July, Gulden said it is difficult to gauge the indirect impact of the tariffs as prices rise. The company remains uncertain how U.S. consumers will react to higher prices.
In the third quarter, North American sales fell 5 % to 1.3 billion euros, a decline largely attributed to the tariffs and the discontinuation of the Yeezy sneaker line. The Yeezy line, produced in collaboration with rapper Ye (formerly known as Kanye West), was cancelled after he made antisemitic remarks on social media.
To strengthen its presence in the United States, Adidas is investing heavily in U.S. 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’s business in the U.S. is a realistic goal.
Earlier this month, Adidas raised its full‑year core profit forecast to 2 billion euros, up from the previous range of 1.7–1.8 billion euros. The company’s efforts to navigate the tariff impact and expand its U.S. market share will be closely watched in the coming months.
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