adidas CEO Bjorn Gulden Warns of Price Increases Due to U.S. Tariffs
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The world of footwear is mostly free from being pulled into the political sphere, but thanks to President Donald Trump imposing tariffs on various nations, many of which are critical to the production of sneakers. We previously broke down the whole situation regarding the potential effect on sneakers and how prices could be passed to the consumer. Still, the first major sportswear brand has publicly commented on the matter — adidas.
During a conference call on Tuesday, CEO Bjorn Gulden stated, "Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be.” He continued, “Therefore, we cannot make any ‘final’ decisions on what to do. Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products.”
All of this uncertainty is affecting adidas, other sportswear brands, companies around the globe, and consumers. Potential price hikes will hurt the footwear space and cause brands to lower production if demand declines, meaning it would be harder to get sneakers. Bjorn Gulden confirmed that adidas will have to increase prices on the consumer side, stating, “Higher tariffs will eventually cause higher costs for all our products for the US market."
However, Gulden also says The Three Stripes is “Working on the assumption that these higher duties will not come back.” Hopefully, for everyone’s sake, prices can remain affordable, but that all depends on various factors. Download the Sole Retriever mobile app for more updates on the latest happenings in the sneaker and streetwear world.
Sneakerhead from South Florida who turned his passion into a career. When not writing for Sole Retriever, I enjoy attending concerts and catching the latest movies. Email: nick@soleretriever.com
