(AURN News) — Some economists argue that tariffs work like a hidden tax on Americans, because the extra costs usually get passed down to consumers in the form of higher prices. This week, Adidas warned that shoppers could soon feel the impact of those tariffs.
“Although we had already reduced the China exports to the US to a minimum, we are somewhat exposed to those currently very high tariffs,” the company said in a statement.
“What is even worse for us is the general increase in US tariffs from all other countries of origin. Since we currently cannot produce almost any of our products in the US, these higher tariffs will eventually cause higher costs for all our products for the US market,” the statement continued.
“Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be. 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,” the company said.
Tariffs are fees placed on goods imported from other countries. Although intended to protect American industries, the cost of those tariffs is usually paid first by U.S. importers — and often passed down the supply chain to consumers.
Despite concerns from businesses like Adidas, the Trump administration continues to highlight its efforts and claims to lower costs for Americans.
A general economy explainer on the White House website states, “President Donald J. Trump took office on a promise to lower costs for the American people — and the actions he has taken are already paying off while the work continues to turn back the economic plague unleashed by the Biden Administration.”
In a White House memo released Tuesday marking Trump’s first 100 days in office, there was no mention of tariffs.
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