White House: Amazon’s tariff announcement is “hostile”
The White House responded to reports that Amazon plans to display its share of what it calls “hostile” the costs of items obtained from tariffs.
Iconic sportswear and footwear giant Adidas said Tuesday that President Donald Trump’s tariffs will raise prices for all products in the United States.
“We are currently unable to produce almost every product in the US, so these higher tariffs will ultimately cost all products for the US market,” CEO Bjørn Gulden said in a statement on April 29th regarding the German company’s first quarter results.
The brand is best known for its sneakers such as Adidas Sambas and Ultra Dost, and produces many components of its products and products from countries such as China, Vietnam, Indonesia, India, Cambodia and other countries. China is currently abdicated with 145% import duties, while others were scheduled to have a tariff of 26% to 49% before the 90-day suspension that begins on April 9th.
In the meantime, blankets with 10% collected for most countries still affect businesses, Garden said.
“We had already minimized exports to the US to China, but we are currently exposed to some very high tariffs. What’s even worse for us is the general increase in US tariffs from all other countries of origin,” he said in a statement on April 29. “A rising cost due to high tariffs ultimately leads to a rising price.”
“Impossible” to know how tariffs affect prices: Adidas CEO
Gulden said despite the “great” quarter, the company does not share its profit outlook for a year ago due to current market volatility.
In the US, sales rose just 3% in the first three months of the year, including winddowns of Yeezys sales due to the brand’s termination in partnership with Kanye West. When we ruled out the Yeezy line, that number went to 13%.
It also saw an increase of 26% in Latin America, 14% in Europe and 13% in China, Japan and South Korea, the quarterly review said. Net sales rose 12.7%, but operating profit margin rose 3.8 points to 9.9%, increasing total operating profit to 610 million euros (US$695 million) in the first quarter. This is an 82% increase.
Garden said that despite the overall positive picture, it is currently “impossible” to quantify or conclude how tariff uncertainty affects consumers.
“With this strong quarter’s ‘normal world’, strong purchase orders and a very positive attitude towards adidas in general, we would have increased our full year outlook in both revenue and operating income,” Gulden said. “We don’t know what the final tariffs will be, given the uncertainty regarding negotiations between the US and the various exporters.”
He added: “Therefore, we cannot make a ‘final’ decision about what to do. ”
