Donald Trump’s tariff increase affects NASCAR as Lionel Racing change diecast prices from $85

Modified Apr 06, 2025 12:10 GMT

NASCAR Xfinity: NASCAR Xfinity Series Race at Darlington - Source: Imagn — NASCAR Xfinity Series Race at Darlington - Source: Imagn

President Donald Trump's new administrative rule of increasing the cost of imported goods has had direct implications on NASCAR. Lionel Racing CEO, Howard Hitchcock, released a statement covering the new move and how they are evaluating their pricing strategy.

President Donald Trump announced a universal 10% tariff on all imports into the US. This is a part of his broader strategy to address what he perceives as unfair trade practices by other countries. Trump has declared a national emergency under the International Emergency Economic Powers Act, citing threats to national security.

The tariffs are expected to have a substantial economic impact, with JP Morgan predicting a US recession by the end of 2025 with possible GDP contraction and very high unemployment rates. This move is described as a baseline tariff with higher rates applied to countries with significant trade deficits.

Lionel Racing, the exclusive producer of NASCAR diecasts, has been directly impacted by the recent tariff increases. They announced it in a press release on social media, X:

The additional 34 percent tariff announced Wednesday, April 2, by the Trump administration means Lionel will be paying a 54 percent tariff on imported die-cast beginning April 9. Because our business is primarily based on a pre-order model, we are evaluating our pricing strategy as this increased tariff rate places a significant burden on our business going forward. We began communicating price adjustments on Race-Win die-cast to wholesale customers on April 4. More price adjustments will be forthcoming."

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These tariffs are intended to boost US manufacturing and protect jobs by making foreign goods more expensive. But this could lead to increased consumer prices. Additionally, Trump imposed a 25% tariff on all foreign cars which will be effective after April 3, 2025.

Tariffs from the Donald Trump administration harmed $1B-worth Rick Hendrick’s NASCAR ‘base business’

Rick Hendrick's business, which is valued at approximately $1 billion, has faced significant challenges due to the tariffs imposed during Donald Trump's administration. According to Steve Phelps, the president of NASCAR, these tariffs have adversely affected Hendrick's base business, particularly in the automotive sector. The increased costs associated with imported materials and parts have strained operations, leading to financial repercussions.

"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 it on a daily basis, and we’re doing the same," Phelps stated. (1:07:45 onwards to Hauler Talk)

The tariffs have particularly impacted the supply chain for Hendrick's racing teams and automotive dealerships. With higher tariffs on imported goods, the cost of manufacturing and assembling vehicles has risen, making it difficult for Hendrick to maintain competitive pricing.

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Born and raised in Pune, India, where a strong emphasis on education instilled in me a lifelong love of learning. My academic journey led me to Amity University in Noida, where I earned my Bachelor's degree in Mass Communication. This foundation in communication arts ignited a passion for storytelling and a keen understanding of audience engagement.

The allure of cinematic storytelling further captivated me, prompting me to pursue a Master's degree in Filmmaking from the prestigious University of Glasgow. This enriching experience honed my critical thinking and analytical skills, enabling me to dissect narratives, understand the nuances of performance, and craft compelling narratives of my own. During my time in Glasgow, I honed my writing skills as a contributor to the university newsletter, covering a diverse range of topics from local sporting events to film screenings and reviews. This experience cultivated my ability to research, analyze, and articulate my thoughts in a clear and engaging manner.

My interests extend beyond the world of film, encompassing a diverse spectrum of sporting passions. From the exhilarating world of Formula 1 to the thrilling spectacle of NASCAR, I find myself captivated by the raw power, strategic brilliance, and human drama that unfold on the racetrack. My passion for sports, coupled with my deep understanding of storytelling, provides a unique perspective that I aim to bring to my writing about NASCAR.

I am eager to share my insights and passion for this exhilarating sport with a wider audience. My background in film, coupled with my experience as a writer and my deep-seated love for competition, equips me to craft compelling narratives that capture the essence of NASCAR – the speed, the strategy, the human element, and the sheer thrill of the race.

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Edited by Mitali