Adidas CEO Bjorn Gulden has cautioned that further U.S. tariffs on imports will lead to higher prices and a decline in consumer purchases. Speaking on Wednesday, Gulden addressed the challenges posed by increased levies imposed by former U.S. President Donald Trump’s administration on imports from China, Canada, and Mexico.
Gulden emphasized the potential impact of new tariffs on Vietnam, Adidas’ top manufacturing hub, where 27% of the company’s production is based. President Trump has previously threatened to impose higher levies on Vietnam, raising concerns over potential cost increases and supply chain disruptions.
“If there are 25% duties coming and it is on more countries, inflation will go up and volumes will go down,” Gulden stated. However, he admitted that Adidas has not yet estimated the exact financial impact of these tariffs. “We know that, but how much? I mean, we can give you a number, but the only thing we know is we will have to adjust very, very quickly.”
Vietnam remains Adidas’ largest production center, followed by Indonesia at 19% and China at 16%. Despite concerns over tariffs on Chinese goods, Gulden downplayed the effect on Adidas, noting that only a small fraction of products sold in the U.S. are made in China.
“We have less than 5% of our volumes going to the U.S. being produced in China,” he explained.
With the possibility of increased trade restrictions and tariffs, Adidas may have to reconsider its manufacturing and pricing strategies to mitigate the effects of rising costs and inflation. As global trade policies continue to evolve, companies like Adidas must remain agile in navigating economic challenges and consumer demand fluctuations.
Sources By Agencies
