Tariffs will raise Adidas costs by €200 million

Adidas announced on July 30 that increased U.S. tariffs will raise its costs by approximately €200 million (S$297 million) in the second half of 2025. These tariffs had already impacted its second-quarter results by tens of millions of euros.

The U.S. recently imposed a 20% tariff on many Vietnamese exports and 19% on Indonesian goods. Vietnam and Indonesia, Adidas’ top sourcing countries, accounted for 27% and 19% of its products in 2024, respectively.

The company posted an operating profit of 546 million euros, surpassing analyst expectations, while its revenue of 6 billion euros fell slightly short, impacted by a stronger euro.

The brand’s success is driven by a resurgence in demand for retro sneaker models like the Samba, which has resonated with customers globally, including in Latin America and China. This trend has helped Adidas close the gap with industry leader Nike.

Despite this success, CEO Bjorn Gulden expressed caution about the future due to ongoing uncertainties around US tariffs, which could affect inflation and consumer demand.

kazimahmood

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