NASCAR chief discusses impact of President Trump tariffs

Newly-appointed NASCAR Commissioner Steve Phelps has confessed he is unsure of what impact the sweeping economic changes introduced by President Donald Trump this week will have on the series.

Phelps was appointed to his newly-created role on March 31st, but within a few days, was facing a potential issue, with President Trump announcing new tariffs for goods being imported into the United States.

This will naturally have an impact on a wide range of industries, and Phelps was quizzed on how the new policy might impact NASCAR teams buying parts, for example.

“I don’t know the answer to that question, Phelps admitted on an episode of Hauler Talk.

"It’s something that we are obviously going to watch very closely, and I’m sure the folks are having discussions. It’s an unknown.

"Like, I had a conversation with Rick Hendrick, and obviously, his base business is affected by the tariffs.

What that looks llke for him, he doesn’t know, but you can bet he’s monitoring that on a daily basis and we’re doing the same.”

READ MORE: NASCAR Race Today: Darlington start times, schedule and how to watch live on TV

What are tariffs?

Tariffs are taxes that a country charges on goods imported from another country.

Usually, they are a percentage of a product's value. For example, with President Trump introducing a 20% tariff on the European Union, a product imported from there would, in theory, mean an additional 20% charge. Say a car part cost a NASCAR team $1000, for example; the cost would now, in theory, increase to $1200 if it was imported from the EU.

The teams wouldn't pay this, however, the manufacturer of the part does. However, the cost would likely be handed on to the team, making the part more expensive to them so that the importer could cover the tariff.

Why is President Trump introducing tariffs?

President Trump argues that the introduction of these tariffs will encourage US consumers to buy more American-made goods, increase the amount of tax raised and lead to massive investment into the country.

A statement via the White House website reads: "Today, President Donald J. Trump declared that foreign trade and economic practices have created a national emergency, and his order imposes responsive tariffs to strengthen the international economic position of the United States and protect American workers."

Later, the site states: "President Trump refuses to let the United States be taken advantage of and believes that tariffs are necessary to ensure fair trade, protect American workers, and reduce the trade deficit—this is an emergency."

READ MORE: NASCAR star Kyle Larson gets new team as Hendrick Motorsports reveal shakeup

Related

NASCAR Cup Series

Denny Hamlin DENIED top spot after Darlington win as Cup Series star falls down the order

• 2 uur geleden

NASCAR Today

NASCAR Today: Kyle Busch issues DAMNING verdict as Cup Series star makes controversial statement

• 3 uur geleden