Although Adidas reaffirmed its financial outlook for 2025, the German sportswear company said, it anticipates production costs of all its products sold in the American markets to rise on account of the planned higher tariffs on imports into the United States.

Bjorn Gulden, CEO, says, although the brand has reduced its imports from China to a minimum, it remains exposed to the current high tariffs to a certain extent..

Unexpectedly high US import taxes on Southeast Asian nations like Vietnam and Indonesia, which are currently paused until July, have caught sportswear manufacturers off guard. These companies had depended on supplies from those countries to lessen the impact of US tariffs on goods from China.

Having released stronger-than-anticipated quarterly sales and profit figures in an unscheduled announcement last week, Adidas said, the increased costs would eventually lead to price increases. However, the company added, it is currently impossible to quantify these increases or to assess their impact on consumer demand for its products.

Gulden noted, Adidas would have raised its forecast for the full year, both for revenue and operating profit, following a solid quarter and a strong order book, if it weren't for the uncertainty surrounding the tariffs.