Adidas CEO raises inflation warning after Trump tariff on China, Canada, Mexico

Further U.S. tariffs on imports would cause prices to rise and consumers to buy fewer products, Adidas chief executive officer Bjorn Gulden said today as the business navigates higher levies implemented by President Donald Trump's administration on China, Canada, and Mexico, as per a report.

Adidas has not estimated the potential impact of U.S. tariffs on Vietnam, its top manufacturing country, which President Donald Trump has threatened with higher levies, Gulden said, Reuters reported.



"If there are 25 per cent duties coming and it is on more countries, inflation will go up and volumes will go down," Gulden told journalists after reporting results. "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 produces 27 per cent of Adidas' total volume of products, followed by Indonesia at 19 per cent and China at 16 per cent.


But Gulden shrugged off the impact of higher U.S. tariffs on Chinese goods, saying only a small portion of its product sold in the U.S. is made in China.


"We have less than 5 per cent of our volumes going to the U.S. is (produced in) China," he said.

FAQs

Q1. Which countries produce Adidas' products?
A1. Vietnam produces 27 per cent of Adidas' total volume of products, followed by Indonesia at 19 per cent and China at 16 per cent.

Q2. Does Adidas sell goods produced in China in USA?
A2. Adidas CEO Bjorn Gulden has said that the company has less than 5 per cent of our volumes going to the U.S. is (produced in) China.