President Donald Trump has announced a 25% tariff on automotive parts that are imported to the United States. This has caused huge concern throughout NASCAR. The Next-Gen car uses 25 standardized parts, and some of them come from suppliers outside the country. This means running costs, sponsorships, manufacturer contracts, and a lot more could be affected.
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RFK Racing co-owner Brad Keselowski was asked about this potential harm at Darlington. He said that there isn’t going to be a heavy financial impact because of the tariffs since most of the parts and equipment used in the car and the garage come from within the country. But then, he also acknowledged that he did not have an in-depth view of the matter.
Keselowski doesn’t expect much trouble in the short term as far as his team’s contracts with manufacturers and sponsors go. However, he is wary that things might change in the longer picture.
He said, “I know that we’re in a good spot with all of our sponsors and deals that we have. I feel like you’re never immune, but we’re positioned well.”
RFK Racing is on the rise currently, having just transitioned into being a three-car operation. It has signed contracts with crucial sponsors like Kroger Racing and is fostering long-term relationships all over. If the new tariff stings team owners in NASCAR, Keselowski might be forced to redraw his business strategies to some extent.
NASCAR is clueless about what harm might befall it
NASCAR President Steve Phelps spoke about the issue on Hauler Talk, the promotion’s official podcast. He revealed that he has been discussing things with Rick Hendrick and that neither of them has a solid idea about how badly automotive businesses could be impacted. However, big brains are monitoring the situation closely.
He said, “It’s something that we are obviously going to watch very closely, and I’m sure the folks [at other teams] are having discussions [about]. It’s an unknown.” Outside stock car racing, Ford, Toyota, and Chevrolet have warned that the prices of their cars might increase significantly. Analysts expect an increase of up to $3,000.
Notably, it isn’t just manufacturers who are pushed into a corner. Global automaker Stellantis has also laid off 900 employees in Michigan and Indiana after stopping production in many of its plants. The coming months are bound to be filled with more news of challenges for the industry.
