On Thursday, April 3, 2025, stocks of major sportswear brands Adidas and Puma experienced significant declines following the implementation of new tariffs by US President Donald Trump. The tariffs, which impact key sourcing markets for these manufacturers, resulted in a steep drop in their stock values, highlighting the potential economic repercussions of the trade policies.
Adidas shares fell by 9%, reaching the 200 EUR mark, which is close to a near-year low for the company. Meanwhile, Puma's stock plunged by 11%, marking its lowest level since November 2016 as of 07:06 GMT on the same day. The declines were part of a broader trend affecting the sportswear industry, with Nike stocks also reflecting a downward trajectory, decreasing by 6.5% on the Frankfurt Stock Exchange.
The situation escalated after Trump announced reciprocal tariffs on countries with high trade surpluses against the United States. This included substantial tariffs on imports from Vietnam, Indonesia, Thailand, Malaysia, Bangladesh, and Pakistan, with rates ranging from 24% to 46%. As these countries are significant manufacturing hubs for Adidas, Puma, and Nike, the tariffs are expected to dramatically increase import prices for US retailers.
In after-hours trading in New York, Nike's stock fell by 7.3%, and in early trading on the German market, it saw a decrease of 7.88%. The overall trend for Nike has been troubling, with shares down 23% since the start of 2025. Puma's stock has suffered even more, plummeting 52% this year, while Adidas has seen a 15% decline.
The introduction of these tariffs has left investors concerned about the future sales prospects for these companies in the US market. Analysts believe that if the tariffs remain in place for an extended period, it could lead to significant revenue losses for Adidas, Puma, and Nike in the coming quarters. The market is reacting to these potential outcomes, with many traders pricing in a forecast of declining sales.
As the economic landscape shifts, the impact of Trump's tariffs on the sportswear industry serves as a stark reminder of the interconnected nature of global trade. The reliance of companies like Adidas and Puma on overseas manufacturing means that changes in trade policy can have immediate and profound effects on their business operations and stock performance.
With the current stock prices reflecting these concerns, Adidas and Puma face pressure to adapt to the changing economic environment. The looming question for investors is how these companies will navigate the challenges posed by increased costs and potential declines in consumer demand.
As the sportswear market braces for the fallout from these tariffs, both Adidas and Puma may need to reassess their pricing strategies and supply chain logistics to remain competitive in a volatile market. The situation continues to develop, and stakeholders will be watching closely to see how these brands respond to the new economic realities.
