Nearly half of the company's products are made in Asian countries which recently agreed trade deals with the US. Announcing its latest results, Adidas chief executive Bjorn Gulden said the tariffs "will directly increase the cost of our products for the US".

He admitted that the company still does not know what the impact will be on customer demand "should all these tariffs cause major inflation". The two largest source countries for Adidas goods are Vietnam, which makes 27% of the sportswear brand's products, and Indonesia, which makes 19%. Earlier this month, the US struck trade deals with both countries, agreeing to impose a 20% tariff on goods from Vietnam and a 19% tariff on Indonesian-made products.

US companies that ship in Adidas products to sell in America have to pay the tariff. The sportswear giant, which makes the popular Gazelle and Samba trainers, had previously warned that it cannot produce most of its products in the US. Its rival Nike in May also said it would raise prices on some trainers and clothing for US customers from June, and later warned the tariffs could add about $1bn (£730m) to its costs.

Adidas boss Mr Gulden said US tariffs have already impacted the company but he said the latest indications point to tariffs directly increasing "the cost of our products for the US with up to €200m during the rest of the year". Despite the impact of tariffs, Adidas reported a 7.3% increase in sales to €12.1bn in the first half of the year with pre-tax profit jumping from €549m to €1bn. Footwear sales increased by 9% in the second quarter of the year between April and June while clothing revenue rose by 17%. Trump introduced higher tariffs on nearly all its global trading partners to encourage more companies to manufacture in the US. Earlier this week, Trump sealed a deal with the European Union (EU) to impose 15% tariffs on all imports, including cars ahead of a 1 August deadline. (BBC/ Reuters)