Price tags and policy shifts: Adidas’s legal response to US tariffs | Commercial Awareness Compass #44
Description
Adidas has announced it will raise prices for U.S. consumers after new tariffs imposed by the Trump administration increased its supply chain costs by €200 million. This steep increase is owed to the fact that nearly half of Adidas’s production is based in Vietnam and Indonesia, two regions now facing higher import taxes when goods enter the U.S. The market’s reaction was immediate: Adidas shares dropped sharply, underscoring how trade policy can instantly affect global brands.
But this is more than just a story about rising prices. Legal teams are being pulled into urgent strategy meetings, combing through supply contracts and assessing litigation risks. With global supply chains under strain and political volatility on the rise, international businesses are entering an era where tariffs can dictate corporate strategy.
So how can a supplier’s location change the terms of a multimillion-euro deal? What clauses protect a business when the rules shift overnight? And how can law firms help clients adapt, diversify, and prepare for the next political curveball?
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