Rapper's products will be pulled from sale with immediate effect, said Adidas.
Adidas says it does "not tolerate antisemitism and any other sort of hate speech." It means Adidas will make a net loss of £217m in 2022.
Mr. West showed a "White Lives Matter" T-shirt design at Paris Fashion Week. Days later, the rapper posted antisemitic comments on his Twitter account.
Adidas said it does "not tolerate antisemitism and any other sort of hate speech."
Rapper Kanye West had previously accused Adidas of stealing his designs. Mr. West's business partnerships have come under increasing pressure.
Adidas reviewed its relationship after Mr. West showed his "White Lives Matters" T-shirt.
Black Lives Matter, which represents opposition to racism and police brutality, was widely used after George Floyd, an unarmed black man, was killed by a police officer in Minneapolis in the summer of 2020.