Adidas to raise prices with the high costs of US tariffs by 200 million euros

Adidas warned that the American customs tariff will cost the German sportswear giant 200 million euros (173 million pounds) and confirmed that it would raise the prices of American customers.

It makes nearly half of the company’s products in the Asian countries that recently agreed to commercial deals with the United States.

The CEO of Adidas announced that the definitions “will increase the cost of our products to the United States.”

He admitted that the company still does not know what will affect customer request “if all these definitions cause great enlargement.”

The largest source of Adidas commodities is Vietnam, which makes 27 % of the brand products for sportswear and Indonesia, which makes 19 %.

Earlier this month, the United States has concluded commercial deals with both countries, and agreed to impose a 20 % tariff on goods from Vietnam and 19 % tariffs on Indonesian products.

American companies that are shipped in Adidas products for sale in America must pay the customs tariff.

Gazellle and Samba coaches, which made the famous Gazellle and Samba coaches, have already warned that it could not result from most of its products in the United States.

Its rival Nike said in May that she will raise prices for some coaches and clothes for US agents from June, and later warned the definitions Add about one billion dollars (730 million pounds) to its costs.

Mr. Golden, President of Adidas, said that the US tariff had already affected the company, but said that the latest indicators indicate the definitions that directly increase “the cost of our products to the United States is up to 200 million euros during the rest of the year.”

Despite the impact of the definitions, Adidas reported an increase of 7.3 % in sales to 12.1 billion euros in the first half of the year with a profit before the tax jumped from 549 million euros to one billion euros.

The shoe sales increased by 9 % in the second quarter of the year between April and June, while clothing revenues increased by 17 %.

Trump presented a higher tariff for almost all its global trading partners to encourage more companies to manufacture in the United States.

Earlier this week, Trump concluded a deal with the European Union (EU) to impose 15 % of customs tariffs on all imports, including cars before the deadline on August 1.

He previously threatened the American customs tariff by 30 % on the goods of the European Union.

However, although the final tax is less, the main European Union economies, including Germany, spoke against the deal.

Germany’s advisor, Frederic Merrs, will he strike the United States and cause “great damage” to his country.

On Wednesday, two of the most well -known car companies in Germany have set how the American customs tariffs hit their business so far.

Mercedes -Benz said the definitions, which the company expects to cost approximately 420 million euros this year, was largely blaming the second quarter profit by approximately 70 %.

Porsche, her luxury cars colleague, said that she increased prices by up to 3.6 % to cover the cost of high import taxes.

Meanwhile in the United Kingdom, Aston Martin warned his profits that this year’s marginalization was due to the tax.

Earlier this month, Stelantis, who owns, including Vauxhal It had already cost it 300 million euros.