Will the world of sports be affected by the global tariff war?

Sports is big business, which means the tariff war playing out between the U.S. and the rest of the world will eventually affect the sports world

It may not be apparent to fans right away, but that could change quickly if things continue on their current path

Wednesday, China announced a new 50 percent tariff on U.S. exports in response to tariffs by the U.S. on incoming goods

The economic conflict initiated by President Trump has already caused sports teams and their business partners to adjust, but there are still many unknowns

Take the racing world. NASCAR, Formula One and IndyCar circuits all use mandatory single-sourced parts to regulate competition, many of which come from overseas

Like tires from BBS, a German manufacturer, chassis from Italy or brake systems from the UK

Increased costs on these foreign parts will affect any team's bottom line

especially those who are struggling to stay in the sport. NASCAR Commissioner Steve Phelps was recently asked about it on the podcast Holler Talk

It's an unknown. I had a conversation with Rick Hendrick, and obviously his base business is affected by the tariffs

What that looks like for him, he doesn't know. But you can bet he's monitoring it on a daily basis

We're doing the same. The 2026 World Cup, which will be held jointly in the US, Canada and Mexico, is straight in the crosshairs

Trump started the trade war by hitting Mexico and Canada with tariffs, and that has caused tension between the three nations

Will things settle down enough to allow countries to work together to host the event in little more than a year time In early March Trump spoke alongside FIFA President Gianni Infantino as they established

a task force that will oversee preparations for the tournament. He was asked if tensions

would hinder the competition. I think it's going to make it more exciting. Tension's a good thing

Even for the workers? Yeah, I think so. I think it makes it much more exciting

The president may have been referring to the NHL's recent Four Nations face-off in February

which skyrocketed in popularity, heavily influenced by the tensions between the U.S. and Canada

But the questions remain, will the tariffs hurt businesses and sponsors who want to be involved in the World Cup

Hyundai is a major FIFA sponsor. Will they spend advertising dollars in the U.S. during the World Cup if their cars are not selling because of the tariffs

Although it is several years out, the same questions can be asked about the 2028 Olympics, scheduled to be held in Los Angeles

Sports teams in general may start spending less on advertising and sponsorship deals if they have to tighten their belts because of the tariff effect

New stadium projects could be delayed or put off as the price of steel and other construction materials rise

And the majority of sports apparel from the likes of Nike and Adidas are made overseas

Those costs, fluctuations in currency, or fears of a recession will all affect how teams operate

Those recession fears could also affect ticket and merchandise sales at sports events in the near future

not to mention streaming and cable TV services as fans tighten their belts and hold on to their discretionary income

For Straight Arrow News, I'm Chris Francis