Throughout its seven-decade history, NASCAR has weathered countless economic storms—from the 1973 OPEC oil embargo that quadrupled gas prices to the 2008 financial crisis that decimated sponsorship budgets. When NASCAR’s seventh-generation race car debuted in 2022, the sanctioning body introduced a revolutionary concept: 26 mandatory parts from single-source suppliers that all teams must use. This shift toward standardization was meant to control costs. But as President Trump’s administration implements sweeping tariffs affecting global automotive supply chains, NASCAR finds itself navigating yet another economic challenge.

NASCAR Commissioner Steve Phelps recently addressed the situation on the sanctioning body’s new “Hauler Talk” podcast with an answer that has set the NASCAR community buzzing. “I don’t know the answer to that question,” Phelps told journalist Nate Ryan when asked about tariff impacts on teams buying auto parts. “It’s something that we are obviously going to watch very closely… It’s an unknown.” Phelps referenced a conversation with team owner Rick Hendrick, whose car dealership empire faces direct tariff exposure: “What that looks like for him, he doesn’t know, but you can bet he’s monitoring that on a daily basis and we’re doing the same.” While Phelps aimed for transparency, his uncertainty is already being contradicted by concrete impacts in the NASCAR ecosystem.

Lionel Racing, NASCAR’s die-cast collectible licensee since 2010, announced a 10% tariff surcharge last week on wholesale purchases by NASCAR teams and a similar charge for retail customers. According to Lionel CEO Howard Hitchcock, this immediate action reflects “the 20% hit to their business” from new tariffs on Chinese imports. This tangible consequence arrives against the backdrop of NASCAR’s ongoing charter system controversy, where basketball legend Michael Jordan’s 23XI Racing and Front Row Motorsports are suing NASCAR over a charter agreement.

Well, Denny Hamlin didn’t mince words and continued his criticism of the Next Gen car when asked about how the new tariff will impact racing. Apart from being a veteran driver, Hamlin is involved as the team owner at 23XI Racing. And he believes that this new surge in the costs to operate a race team will be felt by the team owners: “There’s vendors that are saying that they’re going to have to raise their prices, and again, the cost of Next Gen itself has gotten so high in general. I’m sure it would fall—it’s going to fall on the teams like you would think.”

NASCAR fans have their say on potential economical crisis that can cripple race teams

“Well. Time to just turn all the cars into super late models,” wrote one fan, referencing the less technologically advanced cars used in regional racing series. This pointed commentary reflects specific concerns about NASCAR’s seventh-generation car, introduced in 2022 with 26 mandatory parts from single-source suppliers, some based outside the U.S. The UK-headquartered AP Racing supplies mandatory brake systems now potentially subject to tariffs. Many longtime fans nostalgically view a return to simpler technology as NASCAR’s potential escape from international supply chain vulnerabilities—a perspective that stands in stark contrast to the sanctioning body’s modernization efforts.

Another fan addressed the charter controversy directly: “Meanwhile, NASCAR is also trying to lock two of its teams out of the sport for not fully agreeing with their charter agreement that’s intentionally designed to force the teams to require millions in corporate sponsorship money to survive.” NASCAR is in a sticky spot. Despite signing a new charter deal, they are not sure if they will be able to help the teams weather the storm against the tariffs. Meanwhile, there’s added pressure on them for losing control over the sport due to their ongoing legal battle against 23XI Racing and FRM.

Some fans maintain historical confidence: “NASCAR made it through the 1973 OPEC oil crisis, the 2008 stock market crash, and the AMA factory racing ban of 1957. I’m sure this one will be no different.” This sentiment captures NASCAR’s demonstrated resilience through five decades of economic challenges, reflecting a belief that the sport’s fundamental appeal transcends temporary economic headwinds. These fans view Phelps’ cautious approach as appropriate prudence rather than leadership failure.

However, other fans identify unique vulnerabilities in NASCAR’s current structure: “The biggest issue will be the OEMs. They’re about to get significant losses and the Trump administration is putting significant pressure on them to not raise prices. They’ll need to cut costs somewhere…” The new 25% tariff on imported vehicles threatens manufacturers who serve as critical NASCAR stakeholders. And team owners like Hendrick and Roger Penske, having built empires through car dealerships, are on the brink of taking big financial hits. Not to forget, NASCAR was in talks with Honda to bring in the fourth OEM partner to NASCAR. But that deal is likely to get stalled for the time being.

As another fan summarized: “Sponsors are going to have to trim their budgets, especially the smaller companies so the lower series teams are probably getting f—–.” With the new $7.7 billion media rights deal and 43% increase in TV revenue, it seems like the team will be able to weather this storm out. Well, this might be true for legacy teams and organizations that have the backing of corporate sponsors. But what about Wood Brothers Racing, Rick Ware, or Hyak Motorsports?

It’s tough to predict how badly this economic shakeup will impact the motor racing industry. But looking at the early signs and prediction the potential outcome could be detrimental to the team owners and overall health of NASCAR.