Add sneakers to the growing list of things that tariffs will make more expensive.
Adidas warned Tuesday that President Donald Trump’s sweeping tariffs could drive up the costs of all its products in the US, as the company remains reliant on imports to stock American shelves.
“Since we currently cannot produce almost any of our products in the US, these higher tariffs will eventually cause higher costs for all our products for the US market,” CEO Bjørn Gulden said.
The warning came alongside Adidas’s first-quarter earnings report, which showed strong momentum: revenue rose 13% on a currency-neutral basis to about $7 million, and profits more than doubled to about $495 million. Footwear led double-digit digital growth across all regions and categories.
But Gulden said that momentum may not last if tariffs persist. While the company has moved some manufacturing outside China, it remains heavily dependent on imports from tariff-exposed countries.
“In a ‘normal world’,” he said, “we would have increased our outlook for the full year both for revenues and operating profit.”
But “the uncertainty regarding the US tariffs has currently put a stop to this,” he added.
In early April, Trump announced a series of steep tariffs on dozens of countries, including longtime allies, but then paused the highest duties for 90 days, keeping a 10% baseline rate in place for most countries and slapping 145% tariffs on most imports from China.
Adidas isn’t the only brand bracing for the fallout.
Companies like Target, Shein, Ford, Volkswagen, and Best Buy have all announced or signaled price hikes tied to tariffs.
Other firms, including GM and UPS, have pulled their financial guidance, citing uncertainty caused by Trump’s tariffs. Chipotle, PepsiCo, and luxury giant LVMH, meanwhile, have warned of slowing sales in the second quarter.
Treasury Secretary Scott Bessent defended the tariffs in a Sunday interview with ABC, describing the shifting tariff plans as designed to create “strategic uncertainty” and give the US leverage in global trade talks.
Still, if tariffs stick, shoppers will be the ones footing the bill.
