Adidas, Uniqlo, Nike And Gap Brace For Bigger Tariff Bills And Tough Choices On US Shelf Prices – Gap (NYSE:GAP), Nike (NYSE:NKE)

Apparel heavyweights from Japan’s Fast Retailing to Germany’s Adidas warned they will likely raise U.S. prices as President Donald Trump moves ahead with steep new tariffs on key garment-making hubs, Vietnam, Cambodia and Bangladesh.

What Happened: Bangladeshi apparel will face a 20% levy, Cambodian goods 19%, and Vietnamese shipments 20% after a last-minute compromise, White House statements and Reuters documents confirm.

Those three countries supplied more than one-third of the $79 billion in clothing the United States imported last year, according to a U.S. International Trade Commission study.

Adidas, which relies on Vietnam for the bulk of its U.S. sneakers and jerseys, has already absorbed “double-digit euro-millions” in extra duties this spring and warned the next round could “directly increase the cost of our products for the U.S. with up to 200 million euros during the rest of the year,” chief executive Bjørn Gulden told Nikkei last Friday.

Fast Retailing, parent of Uniqlo, operates 74 U.S. stores and sources from 60 Vietnamese, 27 Bangladeshi and 19 Cambodian factories. Chief financial officer Takeshi Okazaki said during an earnings briefing in July that the chain will “adjust prices flexibly, taking into account tariffs and other costs and determining a balance between price and value.” A company insider told Nikkei that some fall and winter items “will have no choice but to rise.”

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Nike Inc. NKE expects its tariff bill to climb by $1 billion this fiscal year and has already begun “surgical” hikes. Gap Inc. GAP in May said that it projects an additional $250 million to $300 million in costs if double-digit duties stick across Asia, while Puma warned of an 80 million Euro hit that could tip it into an annual loss, states a Reuters report.

Why It Matters: Industry groups warn that layering country-specific rates on top of Trump’s baseline 10% global duty risks amplified inflation in the clothing aisle. Still, the White House argues higher tariffs will “level the playing field” and encourage more U.S. manufacturing, positions echoed by trade adviser Kevin Hassett.

With the first holiday orders already booked, most brands say sticker shock will hit early 2026. Until then, retailers face a balancing act between raising prices enough to cover a sudden tax bill, but not so much that cost-conscious shoppers walk away.

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