Adidas expects a roughly €120 million ($140 million) hit from the tariffs imposed by U.S. President Donald Trump, according to CEO Bjorn Gulden. The estimate, lower than the €200 million warning issued in July, reflects costs that will largely materialise in the final months of the year. Because more than 90 % of Adidas’s production is based in Asia, shipments to the United States are subject to substantial import levies. North America accounted for over 20 % of the company’s sales last year, making it a crucial market.
Gulden stressed that, although the direct cost estimate has been revised downward, the indirect effects of the tariffs remain difficult to gauge, particularly regarding potential price increases and consumer reaction in the U.S. “We don’t know how the consumer will react in the US when these higher prices come into effect,” he said.
In the third quarter, North American sales fell 5 % to €1.3 billion, a decline attributed to the tariffs and the termination of the Yeezy sneaker line. Adidas had partnered with rapper Ye (formerly Kanye West) on the line but ended the collaboration after his antisemitic remarks on social media.
To offset the downturn, Adidas is investing heavily in U.S. college sports in an effort to close the gap with industry leader Nike. Gulden acknowledged the sizable disparity, noting, “The distance to Nike in the US is so big that we cannot have the ambition of being number one.” Nevertheless, he expressed a goal of doubling Adidas’s U.S. business, without specifying a timeline.
Earlier this month, Adidas raised its full‑year core profit forecast to €2 billion, up from the previous range of €1.7‑€1.8 billion. The company’s financial outlook and strategic investments will be closely watched as it navigates tariff challenges and competition in the U.S. market.
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