The escalating tariff dispute between the U.S. and other countries around the world may soon have an impact on the sports world.
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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
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It may not be apparent to fans right away, but that could change quickly if things continue on their current path
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Wednesday, China announced a new 50 percent tariff on U.S. exports in response to tariffs by the U.S. on incoming goods
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The economic conflict initiated by President Trump has already caused sports teams and their business partners to adjust, but there are still many unknowns
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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
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Like tires from BBS, a German manufacturer, chassis from Italy or brake systems from the UK
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Increased costs on these foreign parts will affect any team's bottom line
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especially those who are struggling to stay in the sport. NASCAR Commissioner Steve Phelps was recently asked about it on the podcast Holler Talk
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It's an unknown. I had a conversation with Rick Hendrick, and obviously his base business is affected by the tariffs
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What that looks like for him, he doesn't know. But you can bet he's monitoring it on a daily basis
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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
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Trump started the trade war by hitting Mexico and Canada with tariffs, and that has caused tension between the three nations
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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
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a task force that will oversee preparations for the tournament. He was asked if tensions
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would hinder the competition. I think it's going to make it more exciting. Tension's a good thing
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Even for the workers? Yeah, I think so. I think it makes it much more exciting
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The president may have been referring to the NHL's recent Four Nations face-off in February
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which skyrocketed in popularity, heavily influenced by the tensions between the U.S. and Canada
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But the questions remain, will the tariffs hurt businesses and sponsors who want to be involved in the World Cup
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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
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Although it is several years out, the same questions can be asked about the 2028 Olympics, scheduled to be held in Los Angeles
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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
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New stadium projects could be delayed or put off as the price of steel and other construction materials rise
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And the majority of sports apparel from the likes of Nike and Adidas are made overseas
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Those costs, fluctuations in currency, or fears of a recession will all affect how teams operate
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Those recession fears could also affect ticket and merchandise sales at sports events in the near future
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not to mention streaming and cable TV services as fans tighten their belts and hold on to their discretionary income
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For Straight Arrow News, I'm Chris Francis
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