Trump's tariffs rattle the motorsport world
Donald Trump recently introduced much-criticized tariffs, which not only raise the price of almost all imported goods, but could also complicate the supply of certain products that have become too costly to produce domestically.
Black flag for Donald Trump. For a week now, the world has revolved solely around the announcement of excessive tariffs. Motorsports and F1 are not left out. A base rate of 10% has been announced for all countries, but those considered to be in a trade deficit with the United States will see their imports subjected to much higher surcharges.
These tariffs, which represent a percentage of the value of imported goods, are likely to drive up consumer prices. For instance, a product initially costing $10 could now be worth $15 with a 50% tax. This protectionist policy is already causing significant concern, especially since it might not have received Congress's approval.
Three teams impacted
Red Bull accompanied by Ford, Haas with Haas Automation, and the newcomer Cadillac are affected by the increase in tariffs.
The Cadillac Case
The company relies on a statement from the president of the American Automotive Policy Council, Matt Blunt, who supports Trump's vision while calling to avoid any price increases for consumers. For now, no details on the material sourcing strategy have been communicated, but with three bases in the United States and one in the United Kingdom, Cadillac will inevitably face the new taxes at some point.
Matt Blunt declares: « American automakers are committed to President Trump's vision of increasing automotive production and jobs in the United States [...]. It is particularly essential that tariffs are implemented in a way that avoids price increases for consumers and preserves the competitiveness of the North American automotive sector, which has been one of the major successes of the president's USMCA agreement. »
Even though it is not yet known precisely where Cadillac will source materials, supplies, and components for its powertrain and chassis in the future, building in America will require importing goods subject to tariffs at some point in the process.
Red Bull and Ford
Ford, on its part, is partnering with Red Bull Racing for the manufacture of power units, a project primarily based in the United Kingdom. Again, any movement of parts between the two continents could be subject to customs duties, complicating logistics and increasing costs.
Haas in the wake
Finally, we have Haas, whose headquarters are in North Carolina. However, this base seems primarily dedicated to development, while car construction and its current operations take place in Banbury, England. Being the only American team currently in F1, it could suffer indirectly through its parent company. Haas Automation, the machine tool company run by Formula 1 team owner Gene Haas, has warned that the introduction of high tariffs on goods by U.S. President Donald Trump had a significant impact on its activities.
The Haas F1 team stated in a press release that the announcement from Haas Automation does not impact the MoneyGram Haas F1 Team. The team's activities continue as usual, and there is no change in our development plan, recruitment process, or other projects.
However, although the MoneyGram Haas F1 team claims that its operations are not affected, economic instability could eventually weaken its financial support. The main concern for Haas will likely come from its core business as a manufacturer of CNC machines and not necessarily from the F1 team itself. If foreign countries implement retaliatory tariffs against the United States, the price of Haas CNC machines will skyrocket. (The CNC machine tool, Computer Numerical Control in English, is a specific device controlled by numerical command via a computer. Its main area of application is mechanical manufacturing.)
A strong wind will blow on the circuits
The repercussions extend far beyond Formula 1. NASCAR and IndyCar, historical disciplines in the country, could also be heavily impacted by these measures, particularly regarding the importation of spare parts or technical materials from Europe or Asia.
Trump has also threatened to hit even harder in case of retaliation, as we have seen with the recent tariff escalation in China, rising from 34% to 104%. The entire American motorsport industry seems caught in a turbulence zone. At this stage, one thing is certain: if the trade war continues, its effects will soon be felt on the tracks.
