Rising Tariffs Challenge Adidas: CEO Bjorn Gulden Speaks Out

Adidas CEO Bjorn Gulden discusses the potential impact of U.S. tariffs on imports, warning of rising prices and decreased consumer spending. While China's contributions are minimal, concerns over potential tariffs on Vietnam remain. Gulden emphasizes the need for quick adaptation to changing levy landscapes.

Adidas CEO Bjorn Gulden expressed concern on Wednesday over potential impacts of further U.S. tariffs on imports, forecasting higher consumer prices and reduced buying. These comments come as the company contends with elevated levies, instituted by former President Donald Trump's administration, on China, Canada, and Mexico.

Gulden highlighted the uncertainty surrounding the effects of potential U.S. tariffs on Vietnam, Adidas's leading production country. "If there are 25% duties coming and it is on more countries, inflation will go up and volumes will go down," he stated during a press briefing. Vietnam contributes 27% of the company's total production, outpacing Indonesia and China.

Additionally, Gulden downplayed the influence of increased U.S. tariffs on Chinese imports, noting that less than 5% of U.S. products are manufactured in China. Adidas's capability to adapt swiftly to tariff changes remains a key focus for the company.

(With inputs from agencies.)