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Home Europe Tariff Turmoil: Trump’s Trade War Threatens Global Sports Industry

Tariff Turmoil: Trump’s Trade War Threatens Global Sports Industry

Lynn Calder, head of Ineos Automotive—the car brand owned by Manchester United investor Sir Jim Ratcliffe—warned starkly that the looming 25% tariffs on vehicles exported to the US could have devastating consequences

The latest wave of tariffs imposed by former US President Donald Trump is sending shockwaves through the global economy—and now the world of sport is bracing for its own impact.

Lynn Calder, head of Ineos Automotive—the car brand owned by Manchester United investor Sir Jim Ratcliffe—warned starkly that the looming 25% tariffs on vehicles exported to the US could have devastating consequences.

“It’s potentially the difference between life and death,” Calder said, calling for “direct and urgent political intervention” to prevent the business from being priced out of the American market.

With Ineos manufacturing based in France, the warning underscores the vulnerability of European companies to the rising tide of American protectionism.

But the sports industry is also feeling the heat, from sponsorship deals and merchandise to infrastructure and international relations.

The United States is set to host two of the biggest sporting events of the decade—the 2026 FIFA World Cup (co-hosted with Canada and Mexico) and the 2028 Los Angeles Olympics.

These events are traditionally golden opportunities for foreign brands to boost their presence in the US, but many now face second thoughts.

South Korean carmaker Hyundai, a key sponsor of FIFA, may be among those reconsidering the value of its investment.

“I suspect some sponsors are now re-assessing how they ‘activate’ such deals in the US,” said John Zerafa, a strategist for major sports bids. “Why would a sponsor spend millions if it’s now prohibitive to sell in America?”

Meanwhile, global sportswear giants such as Nike, Adidas, and Puma—many of which rely on Asian manufacturing—have already seen stock values drop, as the cost of importing materials rises.

However, sports finance expert Kieran Maguire suggests that the financial burden may be manageable. “Even with a 40% tariff, the added cost per jersey could be as little as $4,” he noted, suggesting the impact on sales could be minor.

But concerns stretch beyond business. There are mounting fears over the atmosphere and logistics of the upcoming World Cup and Olympics. With Trump recently proposing 25% tariffs on goods from Mexico and Canada, tension among the three co-host nations is high.

Trump claimed such friction would make the tournament “more exciting,” but many worry it could complicate security coordination, infrastructure planning, and even fan travel across borders.

Adding fuel to the fire are Trump’s inflammatory political statements—like suggesting Canada become the “51st state”—which have already sparked backlash at sporting events, with American anthems being booed at NHL and NBA games north of the border.

“The whole point of hosting global sports events is to show you’re open and welcoming,” said Zerafa. “Trump’s America is sending the opposite message.”

The International Olympic Committee has expressed confidence that Trump’s passion for sport will override politics, ensuring LA 2028 runs smoothly. Yet with retaliatory tariffs on the rise worldwide, even sports equipment and services may be impacted.

For now, media exports such as the Premier League’s £2bn deal with NBC remain safe—classified as a service, not a product. But with stock markets sliding and fears of recession growing, fans may soon have less money to spend on tickets and subscriptions.

The trade war’s ripple effects are only beginning to be felt in sport—and they could stretch far beyond the balance sheet.

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