Adidas Stock: Trump's Tariffs Trigger Double-Digit Plunge

The German sportswear manufacturer Adidas suffered a dramatic stock market collapse on Thursday, with shares plummeting by 11.72 percent to hit a 52-week low. This steep decline made Adidas the biggest loser among Germany's leading indices, with no other company experiencing comparable losses. The catalyst for this market shock was US President Donald Trump's announcement of new tariff packages, which are expected to severely impact export-oriented companies like Adidas. Market participants responded with heightened anxiety, substantially reducing their positions in Adidas shares. The sportswear giant is particularly vulnerable given its significant sales exposure to the American market and its heavy reliance on Asian manufacturing, with over 60 percent of its products sourced from countries now targeted by Trump's tariffs, including China, Vietnam, and Indonesia.

Broader Market Impact

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The Adidas stock collapse reflected a generally gloomy mood across the German stock market. The DAX index fell to its lowest level since early February, sliding below the 22,000-point mark and closing the trading day down 3.0 percent at 21,717.39 points. The MDAX also recorded substantial losses, declining by 2.25 percent. The entire sportswear sector felt the shockwaves, with domestic competitor Puma suffering similar double-digit losses, while even US industry giant Nike saw significant declines in pre-market trading. As uncertainty gripped the markets, investors fled to safe-haven assets like government bonds and gold-typical behavior during crisis periods. Analysts now fear companies will either have to reduce their profit margins or pass higher costs to consumers, both scenarios carrying negative implications for business development.