Uniqlo, Adidas Latest To Warn US Price Hikes As Trump Slaps Tariffs On Asian Manufacturing Hubs

Several brands have stockpiled goods in the U.S. ahead of the tariff implementation on Aug. 1.

German sportswear brand Adidas (ADDYY) and Japan's Fast Retailing, which owns Uniqlo, are the latest companies to warn of higher product prices in the United States, as Donald Trump's tariffs take effect.

The U.S. has set reciprocal import duty rates of 20% on Vietnam, 35% on Bangladesh, 36% on Cambodia, and 19% on Indonesia and the Philippines. These countries manufacture and export a significant percentage of apparel and footwear for brands worldwide.

Adidas CEO Bjorn Gulden said earlier this week that the tariffs would "increase the cost of our products for the U.S. with up to 200 million [euros] during the rest of the year," according to a Nikkei report, which added that Vietnam is the largest producer of Adidas products sold in the U.S.

Takeshi Okazaki, CFO at Fast Retailing, said in the company's recent earnings call that Uniqlo would "adjust prices flexibly, taking into account tariffs and other costs and determining a balance between price and value."

Fast Retailing operated 74 stores in the U.S. as of May, and has a large number of sewing factories in Vietnam, Bangladesh, and Cambodia. "We will have no choice but to raise prices on some products," a company source told Nikkei.

Several brands have already flagged rising costs and potential price hikes tied to the tariffs, even as many have rushed to stockpile goods in the U.S. ahead of the implementation to cushion some of the impact.

Nike, which manufactures 50% of its footwear in Vietnam and 27% in Indonesia, said in June it expected $1 billion in additional tariff-related costs and had begun raising prices on its U.S. products.

U.S. retailer Gap (GAP), German sportswear brand Puma, and Swedish fast-fashion giant H&M have also warned of higher costs and incoming price hikes.

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