Adidas warns customers of impending price hikes due to tariffs

Adidas, the sportswear staple, is warning American customers that tariffs on its products will lead to price hikes

The company, based in Germany, did not say how much those prices would increase

Adidas has key suppliers in countries that are subject to the recently announced tariffs by President Trump

They include China, Vietnam, and Cambodia. While first quarter profits increased for Adidas, it warned of economic headwinds

It released a statement on Tuesday saying higher tariffs will eventually cause higher costs for all our products for the U.S. market

CNBC reports that Adidas has already reduced exports of its merchandise that is made in China

President Trump had previously announced a 145 percent tariff on Chinese goods coming into the U.S

The statement from Adidas noted that the company does not know what the final levies will be

Quote, therefore, we cannot make any final decisions on what we do

Cost increases due to higher tariffs will eventually cause price increases But it is currently impossible to quantify these or to conclude what impact this could have on consumer demand for our products

Adidas is best known for its sneakers, including Stan Smith, Sambas and Superstar

It also sells an assortment of sportswear. Many of those goods are made in factories in Vietnam and Cambodia, which CNBC reports are subject to American tariffs in the 40 percent range

The company says its brand and orders remain strong. It says net income went up in the first quarter by 155 percent and sales increased by nearly 13 percent

ysts say footwear has been a strong performer, as has lifestyle clothing

Sourcingwise.com indicates that Adidas produces a vast majority of its products, anywhere from 70% to 80% in Asia and 20% to 30% in Europe

with Adidas saying it currently does not produce almost any of its products in the U.S

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