Adidas warned Tuesday that U.S. tariffs will increase its product costs by up to $230 million this year, prompting the German sportswear company to raise prices for American consumers, according to the BBC. CEO Bjorn Gulden said nearly half of Adidas’ products are made in Asia and said the tariffs "will directly increase the cost of our products for the US." Vietnam and Indonesia, which supply much of the goods, now face 20% and 19% tariffs under new U.S. trade deals. U.S. companies importing Adidas products must pay tariffs, as the brand cannot manufacture most of its goods domestically. Footwear and apparel sales rose 9% and 17% in the second quarter, respectively. Adidas joins Nike and other brands in adjusting prices amid Trump’s escalating tariff agenda.
