The Effect of Trump’s Tariffs on Sport
By Prof Dr Ian Blackshaw
President Donald Trump seems to have gone overboard with the tariffs/duties that he imposed on his so-called ‘liberation day’ on 2 April 2025, which apply to a wide range of countries and goods in a wide range of industries.
The question arises how they may affect sport, which is also a financially significant global industry.
Although, apart from China, which is facing tariffs/duties of 104%, the effect on the wide range of industries connected with sport through investment or sponsorship of these wide- ranging tariffs/duties imposed by President Trump will not become entirely clear depending upon what he does after the pause of 90 days, which he introduced on 9 April 2025. One thing seems to be clear and that is President Trump’s unpredictability; and uncertainty, as is well known, is anathema to financial markets.
Global stock markets had fallen as investors reacted negatively to the tariffs/duties imposed by him one week earlier, on 2 April 2025, based on general fears of inflation and a possible global recession, but the markets have since rallied to a certain extent and may be expected to continue in a southerly direction.
However, the final measures, after the pause, may reverse that trend, and, in particular, result in a higher US dollar. This could have a particularly negative effect on the finances of sports clubs/teams, whose finances are linked to the US currency. For example, Manchester United has loans of US$650m from the US and the club’s shares are listed on the New York Stock Exchange. These loans, when converted to English pounds sterling, would increase and perhaps have adverse consequences under the English Premier League Profit and Sustainability Rules, which limit football clubs' losses.
According to the Manchester United 2022 accounts, there was a cost of £58m due to foreign exchange movements on these loans. Therefore, the Manchester United board will be anxious to see what happens regarding global exchange rates, as a foreign exchange market reaction to them.
Again, sponsorship could also be adversely affected by these tariffs/duties, bearing in mind that the US is set to stage two of the world's biggest sports events over the next few years, including the 2026 Men’s World Cup and 2028 Los Angeles’ Olympics and Paralympics.
These events usually provide foreign businesses with key opportunities to raise their profile and boost their sales in the US through association with these major sporting events.
For example, the Korean car manufacturer Hyundai will be seeking to take advantage of its sponsorship deal with FIFA during this year’s Club World Cup, due to take place in the US from 14 June to 13 July, and next year’s World Cup, due to take place in the US, Canada and Mexico from 11 June to 19 July. But what of the tariffs/duties of 25% on automobiles? Why spend millions of dollars if it becomes prohibitive financially to sell automobiles in the US?
Also, many sportswear manufacturers, such as ADIDAS and NIKE sponsor many teams and sportspersons and source their materials and manufacture their products in China, which, as mentioned, is the subject of the brunt of these tariffs/duties, so, how will they face the financial effects of them?
With imported materials, such as steel and aluminium, becoming more expensive as a result of these tariffs/duties, concerns may be raised about the development of necessary infrastructures to enable these US football tournaments to take place and run smoothly.
However, there is one silver lining in the midst of all this possible gloom. The English Premier League, which is the most popular football league in the world, exports its matches to the US through its £2 billion TV deal with NBC, and, as this is deemed to be a service and not a product, these tariffs/duties will not kick in.
With President Trump’s unpredictability, perhaps it is too early to say what effect these tariffs/duties, designed to ‘Make America Great Again’, may have on sport and sporting events, not only in the US but also elsewhere in the world!
Prof Dr Ian Blackshaw may be contacted by e-mail at ‘
