&w=3840&q=100)
Adidas products may become costlier in the US, thanks to Trump tariffs
The company said that the global trade dispute was preventing it from raising its full-year outlook despite a substantial increase in first-quarter profits, according to a report by CNBC. 'Higher tariffs will eventually cause higher costs for all our products for the US market,' Adidas said in a statement as quoted by CNBC.
After Trump imposed 145 per cent tariffs on imports from China, Adidas said it had already reduced its China-made products shipped to the US to a minimum. Yet, the biggest impact on the company is from the general 10 per cent tariffs imposed on all other counties by the US.
'Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be,' the Adidas statement mentioned.
No clarity on what to do
Currently, various countries are in talks with the US to reach a trade agreement to avoid elevated tariffs, ensuring fair trade practices. As a result, companies across the world are unclear on their businesses and are unable to make decisions on their future course of work, including Adidas.
Also Read
'Therefore, we cannot make any 'final' decisions on what to do. Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products,' Adidas explained in its statement, as quoted by CNBC. Adidas said it was currently unable to produce almost any of its products in the US.
Retailers weigh cost of tariffs
The company, famous for sneakers like Superstar, Sambas, Stan Smiths, and Gazelles, as well as sportswear, makes its products in countries like Vietnam and Cambodia. These countries could face US tariffs of over 40 per cent because there is no trade deal, according to the media reports.
Global uncertainty caused by tariffs
The Trump tariffs created global uncertainty by raising import taxes on goods from countries like China, Vietnam, and others, disrupting global supply chains. Businesses were unsure about future costs, trade policies, and sourcing decisions, leading to price increases, shifting manufacturing locations, and concerns about demand and profits. This uncertainty affected everything from low-cost retailers to luxury brands.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
22 minutes ago
- Hindustan Times
Pak outspending India 3:1 in US lobbying
Pakistan is outspending India 3 to 1 on payments to lobbying and strategic communications firms in the US in an attempt to gain greater access to the hallways of power in Washington DC, according to filings with the US Department of Justice reviewed by HT. The Trump administration's interest in Pakistan has risen considerably after the two countries agreed to boost cooperation in the critical minerals sector. (AFP) Pakistan spends an estimated $600,000 per month on strategic lobbying efforts to gain greater access to the White House, Congress and US government agencies. The country, which has faced a protracted economic crisis over the last few years , has hired a battery of six lobbying and legal firms to expand its outreach in Washington DC. By contrast, India, with an economy over 10 times the size of Pakistan's, spends roughly $200,000 a month and has hired only two lobbying firms. The numbers are relevant, especially given Indian concerns about the inroads Pakistan has managed to make into the second Trump administration. Islamabad has secured a meeting for Army Chief Field Marshal Asim Munir with President Trump. It has also managed to get the Trump administration interested in Pakistan by touting the prospects of US investments in critical minerals and oil reserves. In addition, Islamabad has won acknowledgement of its role as a key ally in the global fight against terror from Washington in recent months. Lobbying and strategic communications firms are a mainstay of power politics in Washington DC. In exchange for a hefty fee, elite firms help foreign governments gain access to key political institutions such as the White House, the State Department, the Pentagon and Congress. These firms also offer strategic communications and reputation management services, which help push a foreign government's preferred narrative to the media and the general public. Pakistan is currently spending generously on six lobbying and communications firms with an estimated monthly expenditure of $600,000, according to public filings with the US Department of Justice. A few of these firms have close ties to the Trump Administration. At the top of this list is Orchid Advisers LLC, which is being paid $250,000 a month to secure Pakistan's access to the Trump administration as well as to the World Bank and the International Monetary Fund. Orchid has also hired Squire Patton Boggs — one of Washington DC's most well-connected legal firms — as a subcontractor to provide legal support and help reach out to US lawmakers in an attempt to strengthen US-Pakistan relations. Next on the list is Seiden Law, which is paid $200,000 a month by Islamabad to establish economic partnerships between Pakistan's private sector and US counterparts, particularly in the field of critical minerals. Seiden, which signed a contract with Pakistan's embassy in America in April, also agreed to help Pakistan gain preferential market access for its products in the US market. Strikingly, Seiden also agreed to help Pakistan deal with the 30% reciprocal tariff announced by the Trump administration in April. The firm seems to have delivered on its promises. Pakistan's tariff rate was reduced to 19% after a trade deal was struck between Islamabad and Washington in July. What's more, the Trump administration's interest in Pakistan has risen considerably after the two countries agreed to boost cooperation in the critical minerals sector. A key part of the reason for Seiden's success may be its subcontractors. Javelin Advisors, which is being paid $50,000 a month by Seiden to aid Pakistan, was founded by Donald Trump's former bodyguard Keith Schiller and former Trump Organisation executive George Sorial. Robert Seiden, the founder of Seiden Law, has been hired as a private investigator for Trump's presidential campaigns in the past. Javelin Advisors has also agreed to help Pakistan push its narrative on Kashmir and India to Congress, the White House and the general public. Another one of Seiden's subcontractors is Conscience Point Consulting — a firm run by a former Assistant Secretary of Commerce Nathaniel Wiedecker — which is paid $25,000 a month for its efforts on behalf of Pakistan. Adding to this is Pakistan's $150,000 a month contract with Qorvis, a public relations and reputation management firm. Qorvis prides itself on its skills in 'strategic narrative development' and 'targeted communications', which it has put at the service of a number of major foreign clients. Most notably, Qorvis took the government of Saudi Arabia on as a client in the aftermath of the 9/11 attacks and worked to rehabilitate the Kingdom's image inside America. Stacked up against this is India's $200,000 monthly spend on two firms. The first is SHW Partners, helmed by former Trump adviser Jason Miller. 'SHW's representation will encompass providing strategic counsel, tactical planning, and government relations assistance on policy matters before the US government, the US Congress, state governments, academic institutions, think tanks, and any other relevant stakeholders as required,'the firm disclosed on April 24 about its contract with the Indian Embassy in Washington DC, which brings in $150,000 a month for the newly created lobbying firm. Miller, a longtime political operative closely associated with Donald Trump, rose to national attention in 2016 while serving as Trump's chief media spokesperson. Known for his combative and outspoken defence of the future president, he was initially in line to take over as White House communications director following Trump's election victory in 2016. However, he withdrew from consideration after allegations surfaced that he had engaged in an extramarital relationship with a fellow Trump campaign staffer. Miller has also subsequently been accused of rape. Despite these controversies, Miller has continued to maintain a strong presence in Trump's inner circle. He played an advisory role in Trump's 2020 re-election effort and returned again as a key strategist for the 2024 presidential campaign. India has also hired BGR Associates, one of Washington's most prominent and influential lobbying firms, to further its interests. By one estimate, BGR was the third largest lobbying firm in Washington DC by revenue and has represented South Korea, Serbia, Panama and Cyprus, among others. The firm was founded by a former Republican governor and retains links to the Trump administration. Sean Duffy, now Secretary of Transportation in the Trump Administration, worked at BGR before joining the Cabinet. While an updated contract between BGR Associates and the Embassy of India cannot be found on the Department of Justice website, people aware of the matter confirmed that BGR still lobbies for India. Over the last three years, BGR has been paid $50,000 a month for its services, bringing India's estimated total lobbying spending to $200,000 a month. While India's spending is considerable, Pakistan's 3 to 1 financial advantage may allow it to reach more political and economic decisionmakers. This has implications for Indian diplomacy, particularly as it tries to hold Pakistan accountable for terrorist attacks on Indian soil and apprise US decisionmakers of its position on sensitive issues like Kashmir.
Mint
22 minutes ago
- Mint
NY attorney general sues Zelles parent company after Trump administration drops similar case
NEW YORK — New York's attorney general on Wednesday sued the parent company of the Zelle payment platform, months after the federal Consumer Financial Protection Bureau abandoned a similar case as the Trump administration was gutting the agency. Attorney General Letitia James, a Democrat, sued Early Warning Services in New York state court, alleging that the company, which is owned by a group of U.S. banks, had failed to protect users from fraud by not including critical safety features in Zelle's design. The Consumer Financial Protection Bureau earlier this year dropped a similar case after President Donald Trump fired the agency's leader and his administration halted nearly all the bureau's work, closed its headquarters and moved to fire many of its workers. In a statement, James' office noted that its suit was filed after the Consumer Financial Protection Bureau abandoned its lawsuit following a 'change in the federal administration.' 'No one should be left to fend for themselves after falling victim to a scam,' James said in a statement. 'I look forward to getting justice for the New Yorkers who suffered because of Zelle's security failures.' James has been a leading antagonist of Trump, a Republican, and has sued him dozens of times. Last week, The Associated Press and other news outlets reported that the Justice Department has subpoenaed James as part of an investigation into whether she violated Trump's civil rights, according to people familiar with the matter. James' case against Early Warning Services alleged that Zelle, which allows users to send and receive near-instant money transfers, failed to include adequate verification processes. Her office said scammers were able to access peoples' accounts or trick users into sending money to bogus accounts that posed as official businesses. In one instance cited by the attorney general's office, a Zelle user got a call from someone posing as an employee of the utility company Con Edison who told the user that his electricity was going to be shut off unless he sent them money through Zelle. The user then transferred about $1,500 to a Zelle account named 'Coned Billing" and then realized he had been scammed but was told by his bank that he could not get his money back, James' office said. In a statement issued through a spokesperson, Zelle called James' lawsuit 'a political stunt to generate press, not progress.' 'The Attorney General should focus on the hard facts, stopping criminal activity and adherence to the law, not overreach and meritless claims,' the statement said. This article was generated from an automated news agency feed without modifications to text.
Time of India
44 minutes ago
- Time of India
Privacy-focused smartphone maker Unplugged to start US assembly in Nevada
By Akash Sriram Smartphone startup Unplugged said on Tuesday it will start assembling its privacy-focused "UP Phone" in Nevada this fall, marking a strategic pivot toward onshore production as the Trump administration pushes to expand domestic manufacturing. The phones will be assembled in Nevada and the company aims to keep the device priced under $1,000, despite the high labor costs, CEO Joe Weil, a former Apple executive, told Reuters. The devices are currently made in Indonesia and priced at $989. "The first step we are approaching is assembly and then phasing in component sourcing," Weil said, adding Unplugged chose a refurbisher-turned-assembler after weighing options from traditional lean manufacturers to smartphone refurbishing firms. He declined to disclose the number of devices Unplugged plans to assemble in Nevada, or the identity of its partner. The company did not share the names of its backers and the amount it had raised. Analysts have said assembling smartphones in the U.S. is prohibitively expensive due to an Asia-centered supply chain and high domestic labor costs. But U.S. President Donald Trump has been pushing companies including Apple to manufacture more domestically by leaning on tariff threats and other measures. Unplugged said it plans to avoid some of the high costs tied to U.S. assembling by building devices in smaller, steady batches instead of releasing a new model every year. Its latest device, available for preorder and set to ship in late September, comes with a year of access to Unplugged's software suite, including firewall-based tracker blocking, a VPN and encrypted photo storage, before switching to a $12.99-per-month plan. The new version retains the same hardware as the previous device that went on sale in 2024 but adds a redesigned interface, firewall dashboard and upgraded camera software. Trump Mobile , a cellular service and smartphone venture licensing the president's brand, has said it is also looking to assemble its debut T1 handset in the U.S.
