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Adidas announced today that the price of all its products sold in the US will increase due to ongoing tariffs imposed by the US government.

The German sportswear giant, famous for its iconic sneakers like the Superstar, Stan Smiths, and Ultraboosts, explained that these price hikes are a direct result of President Donald Trump's trade policies, which have created significant uncertainty in global trade.

According to USA Today, Adidas CEO Bjørn Gulden confirmed the company's plans to raise prices but emphasized that the exact increase remains uncertain, given the unpredictable nature of current trade negotiations.

"Higher tariffs will eventually cause higher costs for all our products for the US market," Gulden stated. "However, it is impossible to quantify the exact impact on consumer demand at this stage."

The company also revealed that while it has minimized exports of products made in China, the broader tariff environment continues to affect its supply chain.

Products sourced from countries like Vietnam, Cambodia, and Indonesia are subject to US tariffs ranging from 10% to 49%, further increasing costs.

Adidas Surpasses Profit Expectations with 12.7% Sales Growth

Despite the rising costs, Adidas reported strong financial results for the first quarter of 2025. Net income jumped 155%, reaching €436 million ($496.5 million), surpassing analyst expectations.

Sales also saw a 12.7% increase to €6.15 billion, thanks to strong performances in markets like Latin America and Europe, CNBC said.

Adidas noted that it had also recovered from its earlier challenges following the end of its partnership with rapper Kanye West, which significantly impacted its Yeezy product line.

While the company's financials were positive, Adidas was cautious about its future outlook. Gulden mentioned that without the shadow of US tariffs, the company would have raised its full-year forecast.

However, due to the ongoing tariff uncertainties, Adidas has refrained from providing a revised profit forecast. "The uncertainty surrounding tariff negotiations makes it impossible for us to make final decisions or predict the impact on consumer behavior," he explained.

Other major retail brands, from low-cost e-commerce companies to luxury brands like Hermès, are also grappling with the potential impact of rising prices and shifting consumer demand.