Sportswear Giants Brace for U.S. Price Hikes Amid Tariff Pressures

Adidas and Puma are poised to follow Nike in raising prices on their athletic shoes and apparel sold in the United States, a move prompted by escalating import tariffs. This adjustment, echoed by market analysts and investors, comes as U.S. tariffs on imports increase retailers' operational costs.

This week, Nike announced plans to increase prices by up to $10 on products currently costing over $150. The decision impacts the industry, with experts suggesting Adidas and Puma may soon follow. UBS analyst Robert Krankowski stated, "Everyone will be impacted by the tariffs," acknowledging the widespread nature of the issue.

President Donald Trump's imposition of a 10% blanket tariff on imports, alongside a sharper 46% tariff on Vietnamese goods, further complicates the scenario. Meanwhile, Puma is in discussions with U.S. partners about a potential price shift. The economic environment remains challenging, with consumer sentiment dipping and inflation expectations growing, according to the University of Michigan Surveys of Consumers.

(With inputs from agencies.)