Adidas has said higher tariffs in the US will add more than £173m (€200m) to its costs in the second half.

The sporting giant said the increased taxes imposed by President Donald Trump has already negatively impacted its cost base during the second quarter, costing the business “double-digit” millions of euros.

The US is planning to impose a 20% tax on goods imported from Vietnam and 19% levy on those from Indonesia.

Adidas chief executive Bjørn Gulden said: “We do also not know what the indirect impact on consumer demand will be should all these tariffs cause major inflation.”

The note came as the retailer reported its operating profit for the first half of the year rose 70% to over £1bn (€1.2bn), with net income doubling to £702m (€811m).

Sales for the Adidas brand surged 14% in the half, boosted by a 12% jump in revenue during its second quarter. Net sales, adjusting for currency swings, rose to £5.19bn (€6bn).

Gulden said: “The year has started great for us and normally we would now be very bullish in our outlook for the full year. We feel the volatility and uncertainty in the world does not make this prudent.

“I have seen that many companies have either removed their outlook fully or reduced it dramatically,” he said, adding that Adidas will maintain its initial guidance for the year of an operating profit of between £1.5bn (€1.7bn) and £1.6bn (€1.8bn).

“We currently feel confident to deliver it, but of course this might change – also upwards should headwinds be less than we currently assume,” Gulden added.

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