Adidas announced that the imposition of new tariffs by the Trump administration would result in higher prices for their sneakers and sportswear in the U.S. market. CEO Bjorn Gulden explained that the lack of U.S.-based production facilities means increased costs due to the tariffs, which are difficult to predict in terms of their impact on consumer demand. In response, Adidas has increased their inventory in the U.S. to preempt tariff impacts and rerouted products originally destined for the U.S. to other markets. The company's U.S. sales saw a modest rise of 3% in early 2025, affected partly by the end of their Yeezy collaboration, while European and Chinese markets experienced significant growth. Despite strong first-quarter results, Adidas refrained from issuing a full-year profit forecast due to the uncertainty surrounding the tariffs, which also impact other production countries like Indonesia and Vietnam.

Adidas is facing challenges due to new tariffs imposed by the U.S., which are expected to cause an increase in the prices of their products for American consumers, as there is little production within the U.S. itself.

The CEO, Bjorn Gulden, indicated that the tariffs' unpredictability has made it impossible for the company to provide a full-year financial forecast, although he anticipates cost increases will eventually lead to higher retail prices.

To mitigate the immediate impact of the tariffs, Adidas has sent additional inventory to the U.S. to clear customs before the tariffs take effect and has redirected some China-manufactured products to other markets.

The U.S. market saw a 3% increase in sales in the first quarter of 2025, which was influenced by the discontinuation of the Yeezy line, a collaboration with rapper Ye, which ended in 2022.

European and Chinese markets showed robust growth with sales increases of 14% and 13%, respectively, suggesting a strategic pivot in focus amid the trade tensions.

Adidas has significant portions of its production in countries like Indonesia and Vietnam, which are also affected by the tariffs, adding complexity to their global supply chain management.

Despite strong quarterly performance, the uncertainty of the tariff situation has prevented Adidas from raising its revenue and profit outlook for the rest of the year.