Impact of US tariffs: Global brands face economic ripple effects
The world's largest consumer and retail brands are discussing the impact of American tariffs on their operations during their financial conferences. Some are already noticing increased import costs, especially from China, on which the US has imposed a 145% tariff.
For some companies, tariffs represent a clear but difficult problem: goods produced abroad, particularly in China, are now more expensive to transport to the US. To protect their profit margins, brands and retailers will be forced to raise prices.
American tariffs. Global brands react
Business Insider reports that the Germany-based Adidas has warned that the prices of almost all its products in the US will increase due to the current tariffs. The company's CEO, Bjørn Gulden, stated that "we currently cannot produce almost any of our products in the US." If tariffs remain in place, it will automatically mean increased prices for footwear in that market.
Amazon, on the other hand, has stated that it emphasizes keeping the platform's prices low despite existing tariffs on imports from China. CEO Andy Jassy stressed that Amazon's wide selection of products is an advantage for consumers. Retailers also resorted to stocking up, but this is a short-term move, especially as complications with supply chains arise. When the idea was proposed to add the cost of imposed tariffs to the product price on Amazon, the White House immediately reacted. White House Press Secretary Karoline Leavitt called this proposal a "hostile and political act." The company withdrew the idea.
Coca-Cola CEO James Quincey stated during a conference call about the company's financial results that the impact of tariffs on the company's operations is "manageable." Coca-Cola is saved by the fact that many ingredients come from local producers, so only selected products, like production machinery, are imported.
However, tariffs and the broader backlash against the US still negatively affect the company. Coca-Cola already noted a decrease in sales among Hispanic consumers in the US and parts of Mexico. In response, Coca-Cola began emphasizing the local manufacturing of its drink in Mexico through the ad campaign "Hecho en México" (produced in Mexico - ed.).
