Charles Esther
The global trade landscape is being reshaped by tariffs, and some of the biggest consumer and retail brands are starting to feel the impact.
While some are grappling with direct effects, like rising import costs, others are witnessing subtler consequences, such as a shift in consumer behavior in certain regions.
Here’s a closer look at how tariffs are influencing some of the world’s largest companies, as reflected in their latest earnings reports.
Adidas Faces Price Increases Due to Tariffs
Adidas, the German sportswear giant, is bracing for price hikes in the U.S. due to the ongoing tariffs.
CEO Bjørn Gulden made it clear that Adidas does not produce nearly any of its products in the U.S. As a result, the company is heavily reliant on imports, which have now become more expensive due to the tariffs.
Gulden confirmed that should the tariffs persist, price increases in the U.S. market would be inevitable.
Amazon Tackles Tariff Costs While Keeping Prices Low
Amazon is committed to maintaining low prices despite the challenges posed by tariffs.
CEO Andy Jassy emphasized that Amazon’s extensive product range offers shoppers numerous opportunities to save money. However, with more than two million third-party sellers on the platform, pricing decisions also depend on what those sellers choose to do in response to the tariffs.
Amazon also incurred $1 billion in one-time costs for the first quarter, partly due to early inventory purchases aimed at reducing the financial burden of tariffs.
Interestingly, the White House criticized Amazon when it was reported that the company planned to disclose the role tariffs played in price hikes. The proposal was later retracted, leading some analysts to speculate that the backlash might deter other retailers from being transparent about tariff impacts.
Coca-Cola’s Local Strategy to Combat Tariff Effects
Coca-Cola has managed to keep its costs in check despite the tariffs.
CEO James Quincey explained that many of the ingredients used in its bottling facilities are sourced locally, minimizing the impact of tariffs on production.
However, Coca-Cola has still felt the ripple effects of geopolitical tensions, especially in markets like the U.S. and Mexico. In particular, the company saw a dip in sales among Hispanic consumers in the U.S. and in regions of Mexico near the U.S. border.
In response to this challenge, Coca-Cola launched an ad campaign in Mexico called “Hecho en México” (Made in Mexico), focusing on its local operations to bolster its brand image and consumer loyalty.
Hasbro Braces for Potential Losses from Tariffs
Hasbro, the renowned toy maker, is also feeling the pressure of tariffs, particularly on toys manufactured in China.
CEO Christian Cocks warned that the toy industry could see a significant drop in sales, similar to the mid-single-digit decline observed during the 2008 and 2009 recession.
Tariffs could potentially impact Hasbro’s net profit by anywhere between $60 million and $180 million in 2025. The company is also contending with the rising cost of board games, some of which are produced in the U.S.
Conclusion
Tariffs are impacting major consumer brands in different ways.
For some, such as Adidas and Amazon, tariffs are pushing prices higher for U.S. consumers.
Meanwhile, Coca-Cola is dealing with the indirect effects of shifting consumer sentiment in certain regions, and Hasbro is preparing for potential losses in the toy market.
As these companies continue to navigate the shifting trade environment, it remains to be seen how they will adapt to the evolving landscape of global commerce.
