President Trump's proposed tariffs may severely affect professional sports leagues and the sports industry.
Overview of New Tariffs
The US has already imposed a 25% tariff on steel and aluminum imports, a 20% tariff on certain goods from China, and levies on products from Canada and Mexico.
Impact on Golf and Sports Events
Golf is one of the most vulnerable segments. Topgolf Callaway Brands uses Chinese parts for its inventory and forecasts a $5 million hit to EBITDA this year. Ticket and concession prices at stadiums may rise due to increased tariffs on supplies from Canada, Mexico, and China, leading to additional costs for fans.
Investors and the Sportswear Market
Sports investors eyeing athletic-wear stocks should remain cautious. Nike shares fell more than 5% after the company announced a drop in fourth-quarter gross margins by 400 to 500 basis points due to new tariffs.
The sports industry, although resilient to political and economic shifts, is not immune to the current trade war.
