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Adidas recently announced it will raise prices for U.S. consumers after new tariffs imposed by the Trump administration increased its supply chain costs by €200 million. This steep increase is owed to the fact that nearly half of Adidas’s production is based in Vietnam and Indonesia, two regions now facing higher import taxes when goods enter the U.S. The market’s reaction was immediate: Adidas shares dropped sharply, underscoring how trade policy can instantly affect global brands.
Tariffs are import taxes placed on goods entering a country. In this case, Adidas is facing higher import costs due to U.S. tariffs on goods made in Vietnam and Indonesia. To offset this, the company is raising retail prices in the U.S., triggering a sharp drop in its share price. Commercial lawyers play a key role in helping them monitor changing rules and assess how price shocks may impact long-term planning.
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