Adidas, Uniqlo prepare US price hikes as tariffs bite Asian supply chains

Adidas and Fast Retailing are the latest apparel giants to warn of higher product prices in the US following new tariffs on imports from major Asian manufacturing bases.

The US has imposed reciprocal import duties of 20 per cent on Vietnam, 35 per cent on Bangladesh, 36 per cent on Cambodia, and 19 per cent on Indonesia and the Philippines, targeting countries that dominate global apparel sourcing.

Adidas CEO Bjorn Gulden said the tariffs could increase the company’s US product costs by up to US$218 million over the rest of the year.

“The tariffs will directly increase the cost of our products for the US,” Gulden told Nikkei Asia, adding that Vietnam is Adidas’ largest production hub for the American market. The company already booked tariff-related losses “in the double-digit euro millions” in the April–June quarter.

Fast Retailing CFO Takeshi Okazaki confirmed that Uniqlo will also raise prices to offset rising costs.

“We will adjust prices flexibly, taking into account tariffs and other costs and determining a balance between price and value,” he said.

Fast Retailing operates 74 Uniqlo stores in the US as of May and sources heavily from Southeast Asia, including 60 factories in Vietnam, 27 in Bangladesh, and 19 in Cambodia.

Other global players are also bracing for higher costs.

Nike, which manufactures half its footwear in Vietnam and 27 per cent in Indonesia, said in June it expects an additional $1 billion in tariff-related costs and has already begun raising retail prices.

Gap previously projected $250 million to $300 million in added costs, while H&M has said it is considering price adjustments.

According to the US International Trade Commission, apparel imports into the country reached $79.3 billion last year, equal to one-fifth of the global total. Vietnam accounted for 18 per cent of the US market, followed by Bangladesh (9 per cent), India (6 per cent), and Indonesia (5 per cent).

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