Adidas Q1 Success Faces Threat from Trump's Trade Tariffs

Despite a blockbuster start to 2025, adidas is treading carefully in the face of escalating trade tensions driven by U.S. President Donald Trump’s aggressive tariff policy.

The German sportswear giant reported a 155% jump in net income for Q1 — a result that surpassed analyst expectations and signaled strong consumer demand, especially for hit styles like the Gazelle, Samba, Stan Smith, and Superstar. But even with momentum on its side, adidas isn’t celebrating just yet.

In a statement to CNBC, the company expressed concern:

“Higher tariffs will eventually cause higher costs for all our products for the US market. Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be.”

With Trump’s newly enacted 145% tariff on Chinese goods dominating headlines, adidas is more focused on broader implications. Countries like Vietnam and Cambodia, where the company heavily relies on manufacturing, could face tariffs exceeding 40% if new agreements aren’t secured — a potentially massive hit to the brand's cost structure.

“Cost increases due to higher tariffs will eventually cause price increases… but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products,” adidas added.

The uncertainty comes just as adidas began regaining its footing following the fallout from its terminated partnership with Ye (formerly Kanye West). Now, trade turbulence threatens to slow that recovery.

Still, compared to competitors, the brand is relatively well-positioned. In contrast, Nike has struggled to maintain performance, with March reports suggesting the company could face its worst revenue decline since the COVID-19 pandemic.

While adidas may be winning the quarter, it’s clear that global trade politics are far from a game — and every brand is now playing defense.