Donald Trump’s tariffs are expected to have an impact on the professional sports league and the broader sports industry. Although resilient to political shifts, the sector is now on alert. The United States has already announced tariffs on steel and aluminum, with the country also imposing tariffs on certain goods coming into the country from China, Canada, and Mexico.
According to reports, Donald Trump’s reciprocal tariffs are expected to take effect starting from April 2. According to reports, the sports leagues and firms are expected to look into these tariffs and how they shape things in their industry. While these teams and leagues usually have revenue streams they can depend on, much of these activities are still tied to global economic activity.
Golf is one of the most vulnerable sports in this aspect, with some brands, including Topgolf Callaway Brands using Chinese parts for a portion of its inventory and is forecasting a $5 million hit to its EBITDA in 2025. While these may look small compared to their overall earnings, it is an example of the uncertainty that the trump administration brings.
Sports tickets are expected to rise
The pinch of the situation may also be getting to fans going to watch the games soon, with predictions of increased concession costs on the way. This follows the news that stadiums projected last month that about $56 million in sales would face increased tariffs on supplies from Canada, Mexico, and China. That figure accounts for about 0.3% of the overall stadium supply spending. It means that many spectators who have been complaining about the rise in ticket prices may see the prices of refreshments go up.
According to Pompliano, Hockey fans may be the next to be affected if the delayed tariffs from the US to Canada eventually go through. This is because about 25% of the National Hockey League’s revenue comes from the Canadian teams, all of which rely on the Canadian dollar. If the Canadian dollar weakens, the agreements between the franchises and the league and their financial obligations could be impacted. NHL players who received their salaries in dollars may also see some changes to their contracts and their interaction with local finance.
In addition, investors looking into purchasing athletic-wear stocks should be mindful. Nike has spread its manufacturing across many regions, minimizing its dependence on China. Even at that, the company still experiences some difficulty. Its shares dropped 5% on Friday after the company announced that it was anticipating fourth-quarter gross margins to drop 400 to 500 basis points because of the new tariffs. This shows that the sports industry, which was always immune to political and economic turmoil, was also involved in this trade war.