Trump tariff impact: Adidas freezes 2025 outlook despite strong first quarter

Adidas AG has decided not to raise its financial plans for 2025, despite reporting higher-than-expected first-quarter profits, due to growing concerns about US President Donald Trump's enforced trade tariffs. The tariffs imposed by the United States will hike prices for consumers in the world's largest sports market, potentially disrupting the German brand's momentum.

"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 conclude what impact this could have on consumer demand for our products," Chief Executive Bjoern Gulden said in the statement, which expanded on last week's preliminary report of surprisingly strong earnings.

Given the year's strong start, the German sportswear giant admitted that under normal conditions, it would have increased its full-year outlook. "We therefore stick to our original outlook but admit that there are uncertainties that could put negative pressure on this later in the year," added Mr. Smith. Unexpectedly high US import duties on Southeast Asian countries such as Vietnam and Indonesia, which have been postponed until July, have caught sportswear makers off guard, as they had counted on supply from those countries to offset the impact of US tariffs on Chinese goods.