Adidas, Nike, Skechers and Lululemon have begun raising their voices about the harmful effects of import taxes. They claim that these tariffs, a product of the last Trump administration, are causing increased prices to U.S. consumers. The tariffs, designed to protect U.S. manufacturing, have caused significant concern among major clothing and footwear brands, which are now grappling with the potential impact on their sales and profit margins.
Adidas, another huge player in the sportswear space, recently sounded the alarm. They argued that the increased import duties will force them to raise prices on popular items such as their Gazelle and Samba trainers. Bjorn Gulden, CEO of Adidas, expressed urgency regarding the situation, stating, “Since we currently cannot produce almost any of our products in the US, these higher tariffs will eventually cause higher costs for all our products for the US market.”
Nike is looking to increase its discounting as the economic weathers turn. The company recently revealed plans to implement a broad range of price increases on certain trainers and apparel beginning in early June. Though Nike didn’t directly cite these hikes to tariffs, it did mention that it is in the habit of doing “price adjustments” across the board. Last year, Nike made 40% of its goods in Vietnam. Further complicating things, the company imported 28% of its fabrics from mainland China, leaving them more susceptible to tariff blows.
Even Sneaker exec David Weinberg, chief operating officer of Skechers, aired concerns about the effects of tariffs on a recent earnings call. He understood the challenging economic conditions. Due to this uncertainty that Skechers withdrew its annual results forecast in April, he noted. Weinberg remarked, “The current environment is simply too dynamic from which to plan results with a reasonable assurance of success.”
Lululemon, the athleisure retailer that didn’t support the original tariffs, just testified about how harmful tariffs have been to its business. The company announced a drop in in-store traffic throughout the Americas. They connected this decrease to economic uncertainty, inflationary pressures, and changing consumer spending patterns. “We experienced lower store traffic in the Americas, partially reflective of economic uncertainty, inflationary pressures, lower consumer confidence, and changes in discretionary spending,” a spokesperson explained.
And as these heavyweight retailers and consumer packaged goods brands juggle a messy economic pie, they’ve raised prices carefully. Meghan Frank from Lululemon stated, “We are planning to take strategic price increases… on a small portion of our assortment, and they will be modest in nature.”
The Trump administration’s use of tariffs as an economic weapon has hit the clothing and footwear industries especially hard. As these companies adjust to increased production costs and fluctuating consumer behavior, they face ongoing challenges in maintaining profitability while responding to market demands.