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In a statement on Tuesday, Adidas CEO Bjørn Gulden said the latest round of tariffs—targeting imports from countries like China and Vietnam—would eventually lead to higher costs for products sold in the US, including the Samba and Gazelle lines. “These higher tariffs will eventually cause higher costs for all our products for the US market,” he said, adding that these cost increases “will eventually cause price increases, not only in our sector,” the Financial Times reported.

Adidas, like many in the sneaker industry, relies heavily on overseas production, with the US lacking the specialized infrastructure and labour force needed to manufacture performance shoes domestically. Even though only 3% of Adidas’s US inventory is now sourced from China, Gulden said the company remains “somewhat exposed” to US-China tariffs. He also noted that smaller tariffs on Southeast Asian countries, such as Vietnam, are having an “even worse” effect on the brand.

In anticipation of the levies, Adidas accelerated shipments into the US and rerouted other goods originally intended for the market. Despite these efforts, the company has frozen plans to revise its full-year revenue and profit guidance. “In a normal world,” Gulden said, “we would have upgraded our outlook,” citing a record-setting first quarter in which operating profit nearly doubled to €610 million.

So far, US consumers have not changed their buying behaviour and no retailers have cancelled orders, Gulden said, noting that the full impact of the tariffs is not yet “visible.” Still, he expressed concern about how quickly that could change.

Sales were strong globally—especially in Europe and Asia—driven by retro styles like the Samba and a new Taekwondo line. The US, however, continued to underperform due to the lingering effects of the terminated Yeezy partnership with Kanye West.

Despite the headwinds, Adidas’s limited exposure to the US market—just 20% of its total revenues—has softened the blow compared to rivals like Nike. Adidas shares dipped 2% following Gulden’s comments but later recovered some ground after news that parts of the tariff hike had been paused.

Adidas has outperformed its main rivals over the past year, with its stock falling just 8%, compared to Nike’s 39% and Puma’s 48% declines.

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