Adidas fears ‘everybody will lose’ in US-China currency war

German sportswear maker Adidas warned Thursday that  “everybody will lose” if a currency war ignites between China, the United States and other countries, while reporting continued strong earnings in its second quarter.

American tariffs on Chinese goods -- with another $300 billion in imports targeted by President Donald Trump last week -- are less harmful to the brand with the three stripes than a potential exchange rate battle, chief executive Kasper Rorsted said.

“What is much more severe is that we start to have a currency war between China, the US and the rest of the world, that’s going to be a situation where everybody will lose,” he told journalists in a telephone conference.

Since the tariffs announcement, Beijing has allowed the yuan to sink below a seven-to-the-dollar lower bound its central bank had previously defended, prompting the US Treasury Department to cry currency manipulation.