Other companies that have warned they might need to increase prices include Temu, Shein, and Walmart.
Adidas and Nike are among companies that have warned shoppers could soon be forced to dig deeper into their pockets, as the sportswear giants say US tariffs are set to cause major losses that may lead to higher prices on their products.
Other companies that have warned they might need to increase prices include Temu, Shein, and Walmart.
The Trump administration has implemented tariff hikes as part of its America First trade policy, arguing that the United States (US) imports more than it exports.
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Prices to increase
Adidas warned that the US tariffs would add up to €200m (R4.1 bn) to costs in the second half of the year; therefore, it might look at increasing prices to mitigate the impact.
The price increases will not affect South Africans for now; however, should the costs be too much, companies might have to increase prices in all countries to make up for the loss.
Adidas CEO Bjørn Gulden, in a statement, said the company cannot give a full outlook due to the uncertainty of the US tariffs. “We still do not know what the final tariffs in the US will be.”
Therefore, Adidas will stick to its initial outlook for 2025 of operating profit between €1.7 and €1.8 billion.
Tariffs to impact consumer demand
He added that they are unsure of the indirect impact the tariffs will have on consumer demand.
Without stating the extent of the price increases, Gulden said they will review their pricing and decide which products they could hike prices on in the US, once tariffs are finalised.
Vietnam, Adidas’s largest sourcing country, accounting for 27% of the company’s total volume, faces a 20% tariff. Indonesia made 19% of Adidas’ products and faces a 19% tariff.
ALSO READ: Trump tariffs unsettle SA farmers as Africa eyes agricultural growth
Nike to increase prices
Nike also told investors that it would be looking at increasing prices, as it expects $1 billion cost increase from tariffs.
CFO Matthew Friend said the brand is looking at increasing prices in the US starting from the fall season, which begins in September. Like Adidas, Nike did not outline how much the prices will increase.
Business Insider reported that Nike’s four-part strategy starts with diversifying its sourcing and allocating production across countries.
Nike said 16% of the footwear it imports to the US comes from China. It expects that share to drop to the high single digits by the end of fiscal year 2026.
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