“I don’t know the answer to that question.” This was NASCAR Commissioner Steve Phelps’ response to how the new tariff policy will affect race teams. Indeed, the level of uncertainty is justifiable considering the sweeping changes that President Donald Trump implemented. In late March, the POTUS announced that he would impose 25% tariffs on imported vehicles and automotive components. This threw NASCAR into the affected bunch as well, with wide-ranging implications. However, Trump took a back step.
NASCAR’s Next-Gen car, introduced in 2022, has 26 parts from single-source suppliers that all teams must use. Those suppliers are mainly American, but they also include foreign brands. What is more, top-notch team owners like Roger Penske and Rick Hendrick are doubly affected as they have automotive businesses of their own. So Trump’s latest announcement may give them a small breather.
A slight relaxation for NASCAR
NASCAR provided a full list of its single-source vendors back in 2021. The imported parts include important components of the vehicle from many foreign countries. These include radiator ducts (from Dallara in Italy), brake systems (from AP Racing Limited in the United Kingdom), bumpers (from Kirkey Racing Fabrication in the UK), prop shafts (from Lentus Composites Limited in the UK), and digital dash and ECU (from McLaren in the UK). Some other components are sourced from American arms of foreign companies. These include wheels (from BBS of America; the parent company is from Germany) and dampers (from Ohlins USA; the parent company is in Sweden). With team owners relying on offshore brands for so many parts, Donald Trump’s initial tariff policy did sound like a setback.
However, the POTUS recently rolled out a positive piece of news. NASCAR journalist Adam Stern reposted a Reuters article on X, highlighting the heartening part of Trump’s newest announcement. “U.S. President Donald Trump is planning to spare carmakers from some tariffs. … Car parts would be exempted from tariffs that are being imposed on imports from China over fentanyl and tariffs levied on steel and aluminum.”
“U.S. President Donald Trump is planning to spare carmakers from some tariffs. … Car parts would be exempted from tariffs that are being imposed on imports from China over fentanyl and tariffs levied on steel and aluminum.” – @Reuters https://t.co/HFcKKiVlwW
— Adam Stern (@A_S12) April 23, 2025
This would be music to the ears of NASCAR and especially team owners Roger Penske and Rick Hendrick. Penske owns the IndyCar Series as well, and it also sources parts from outside countries. For example, the DW12 Dallara chassis, which comes from Italy, the O.Z. and BBS, two wheel providers, are based in Italy and Germany, and the motor generator unit for IndyCar’s hybrid comes from Empel, based in the Netherlands. Hendrick, owner of Hendrick Cars, has also been affected, as mentioned by Steve Phelps. “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 that on a daily basis, and we’re doing the same.”
NASCAR and its team owners can now sigh in relief. What is more, Donald Trump’s toned-down approach will have an impact on Formula One as well.
A smaller world than it appears?
Well, Donald Trump’s tariff policies mainly affected US carmakers who imported foreign parts. As it turns out, three Formula One teams are also affected. These are Cadillac, Ford, and Haas. Cadillac F1 will have three bases in the United States. These are in Indiana, where it intends to conduct the bulk of its car manufacturing, in North Carolina, where its power unit facility will be located, and its Michigan base will offer additional operational support. Ford’s construction power units for Red Bull Racing and Racing Bulls are also affected. Although located in the UK, any transfer of goods across borders will likely come with an associated tariff. Then we have Haas, which has a base in North Carolina. Its primary business as a CNC machine manufacturer is at risk. If foreign countries enact retaliatory tariffs against the United States, Haas CNC machines will skyrocket in price.
Haas Automation released a statement in early April explaining the range of Donald Trump’s impact. “In recent days, we’ve seen a dramatic decrease in demand for our machine tools from both domestic and foreign customers. Out of caution, we have reduced production and eliminated overtime at our sole manufacturing plant in Oxnard, California, where we employ 1700 workers and have been in operation since 1983. We have also halted hiring and put new employment requisitions on hold.” However, it had also added a note of optimism: “While tariffs will have a significant impact on Haas Automation’s business, we’re optimistic that the Trump Administration will come up with solutions to provide relief for U.S. manufacturers.”
As it turned out, Haas Automation was right in its prediction. With Donald Trump’s relaxed tariff policy, NASCAR and other leagues may be able to relax a bit.
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