The US And China Currency Wars Are All About Adidas: Fear That Everyone Is A Loser.

Adidas, the German sports shoe maker, recently announced that its second quarter profits continued to be strong, but warned that if the United States, China and other countries started a currency war, "everyone is a loser."

Kasper Rorsted, executive director of Adidas, said that the impact of exchange rate war on companies would be more severe than the impact of tariffs imposed by the United States on Chinese goods. US President trump announced that it would increase tariffs on US $300 billion in Chinese products.

Agence France-Presse reported that Rorsted told reporters in a conference call: "what is more serious is that we begin to see China, the United States and other countries conduct currency wars, which will evolve into a situation where everyone is a loser."

Since trump announced a new tariff on Chinese goods, the Beijing authorities have allowed the yuan to derogate from the 7 yuan to 1 U.S. dollar barrier, prompting the US Treasury to declare China a currency manipulator.

Rorsted predicts that with the passage of time, the currency war will slow the growth of the economy and have a "serious impact" on enterprises such as Adidas that extend to the world.

45% of Adidas revenue comes from the US and China market. Therefore, other currencies weaken against the euro exchange rate, which will crack down on Adidas's sales and profitability.