Shares of German sportswear giants Adidas and Puma experienced significant gains following the announcement of a U.S.-China agreement to reduce mutual tariffs. Adidas shares rose by 3.4%, while Puma’s shares increased by 5.9%, reflecting investor optimism about the potential easing of trade tensions between the two countries.
The agreement aims to lower the tariffs imposed during the previous trade disputes, which had adversely affected companies reliant on international supply chains. For instance, Puma had previously faced challenges due to high tariffs on products manufactured in China and Vietnam, leading to strategic adjustments in its supply chain.
Similarly, Adidas had warned that ongoing tariffs could lead to increased prices for consumers, as the company could not entirely shift its manufacturing away from affected regions.
The recent agreement between the U.S. and China is expected to alleviate some of these pressures, providing a more favorable environment for companies like Adidas and Puma to operate and plan their production and pricing strategies.
