HERZOGENAURACH, Germany (Reuters) - Further U.S. tariffs on imports would cause prices to rise and consumers to buy fewer products, Adidas chief executive officer Bjorn Gulden said on Wednesday as the
Adidas CEO Warns Further Tariffs Could Increase Inflation and Reduce Sales
HERZOGENAURACH, Germany (Reuters) - Further U.S. tariffs on imports would cause prices to rise and consumers to buy fewer products, Adidas chief executive officer Bjorn Gulden said on Wednesday as the business navigates higher levies implemented by President Donald Trump's administration on China, Canada, and Mexico.
Adidas has not estimated the potential impact of U.S. tariffs on Vietnam, its top manufacturing country, which President Donald Trump has threatened with higher levies, Gulden said.
"If there are 25% duties coming and it is on more countries, inflation will go up and volumes will go down," Gulden told journalists after reporting results. "We know that, but how much? I mean, we can give you a number, but the only thing we know is we will have to adjust very, very quickly."
Vietnam produces 27% of Adidas' total volume of products, followed by Indonesia at 19% and China at 16%.
But Gulden shrugged off the impact of higher U.S. tariffs on Chinese goods, saying only a small portion of its product sold in the U.S. is made in China.
"We have less than 5% of our volumes going to the U.S. is (produced in) China," he said.
(Reporting by Helen Reid and Linda Pasquini)
