Core Viewpoint - Adidas has indicated that U.S. tariffs imposed by the Trump administration will lead to price increases for all its products sold in the U.S. market, which is affecting its ability to raise its full-year outlook despite strong first-quarter profits [1][3]. Group 1: Impact of Tariffs - The company is "somewhat exposed" to tariffs on products made in China, currently at an effective rate of 145%, but has minimized exports of these products to the U.S. [2] - The most significant impact is from the general increase in U.S. tariffs on other countries, which are currently at 10% while trade negotiations are ongoing [2]. - Adidas has stated that the uncertainty surrounding tariff negotiations makes it impossible to quantify the final impact on costs and consumer demand for its products [3]. Group 2: Production and Supply Chain - Adidas is unable to produce almost any of its products in the U.S., relying on factories in countries like Vietnam and Cambodia, which face U.S. tariffs exceeding 40% in the absence of a trade deal [3][4]. - The retail sector, including both low-cost e-retailers and luxury brands, is facing similar challenges regarding price hikes and potential impacts on consumer demand due to tariffs [4].