A major shift in U.S. trade policy changed the story for Rick Hendrick and Roger Penske. At first, new tariffs on car parts caused concern across NASCAR and IndyCar. Key parts came from places like Italy and the United Kingdom. Costs were expected to rise. Then, President Donald Trump made an unexpected move. It brought sudden relief to teams and manufacturers. But what parts were saved—and why did this matter so much to racing?
Key Highlights
- NASCAR and IndyCar teams, including Rick Hendrick’s, are exempt from hefty tariffs on crucial imported car parts.
- Exemptions include key components like the DW12 Dallara chassis and BBS wheels, reducing cost pressures.
- Global supply chain disruptions from tariffs are minimized for high-profile figures like Roger Penske.
- The tariff relief helps maintain competitive operations without additional financial burdens for NASCAR teams.
- The surprise tariff move stabilizes the motorsport industry, crucial for operations like Hendrick and Penske’s.
NASCAR’s Initial Reaction and Industry Concerns
While the announcement of a 25% tariff on imported vehicles and automotive components by President Donald Trump initially sparked uncertainty within NASCAR, the organization has since been grappling with the potential ramifications.
NASCAR Commissioner Steve Phelps openly acknowledged the ambiguity surrounding the impact on race teams, reflecting the concerns shared across the industry. The sweeping changes introduced by the tariff policy have left stakeholders in a state of apprehension.
“I don’t know the answer to that question.” – (Steve Phelps)
With NASCAR’s Next-Gen car relying on 26 parts from single-source suppliers, the potential disruption to the supply chain posed considerable challenges. Although the majority of these suppliers are American, the inclusion of foreign brands added complexity to the situation.
High-profile figures like Roger Penske and Rick Hendrick, who also have substantial interests in the automotive sector, found themselves in a precarious position. The initial announcement had the industry bracing for costly adjustments, highlighting the interconnectedness of global supply chains.
Specific Parts and Foreign Suppliers
A considerable number of NASCAR’s vehicle components are sourced from foreign suppliers, emphasizing the global nature of its supply chain. This international network includes single-source vendors providing critical parts vital for vehicle performance.
Among these components, radiator ducts originate from Dallara in Italy, while brake systems are supplied by AP Racing Limited in the United Kingdom. Bumpers come from Kirkey Racing Fabrication in the UK, and prop shafts are produced by Lentus Composites Limited, also in the UK. Furthermore, McLaren, based in the UK, provides the digital dash and ECU.
Additionally, some components are sourced from American divisions of foreign companies. For instance, BBS of America, with its parent company in Germany, supplies wheels, and Ohlins USA, under a Swedish parent company, provides dampers.
This reliance on foreign parts highlighted potential challenges due to Donald Trump’s initial tariff policy, which threatened to disrupt this intricate supply chain.
“U.S. President Donald Trump is planning to spare carmakers from some tariffs. … Car parts would be exempted from tariffs that are being imposed on imports from China over fentanyl and tariffs levied on steel and aluminum.” – (Adam Stern)
“U.S. President Donald Trump is planning to spare carmakers from some tariffs. … Car parts would be exempted from tariffs that are being imposed on imports from China over fentanyl and tariffs levied on steel and aluminum.” – @Reuters https://t.co/HFcKKiVlwW
— Adam Stern (@A_S12) April 23, 2025
Tariff Exemptions and NASCAR/IndyCar Relief
Recent developments in tariff policy have brought relief to NASCAR and IndyCar, as President Donald Trump announced exemptions for certain car parts from tariffs.
This decision benefits entities like Roger Penske’s IndyCar Series and NASCAR teams, which rely on international suppliers for critical components. The exemption shields them from the financial burden posed by tariffs on imports from countries such as Italy, Germany, and the Netherlands, where key parts are sourced.
Key Exemptions Include
- DW12 Dallara Chassis: Sourced from Italy, significant for IndyCar operations.
- O.Z. and BBS Wheels: Italian and German suppliers, important for NASCAR and IndyCar.
- Motor Generator Unit: Imported from Empel in the Netherlands, fundamental for IndyCar’s hybrid systems.
- Base Business Impact: Rick Hendrick’s operations are directly affected, prompting close monitoring of tariff developments.
“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 that on a daily basis, and we’re doing the same.” – (Steve Phelps)
Broader Motorsports and Haas Automation Impact
Donald Trump’s relaxed tariff policies have implications beyond NASCAR and IndyCar, extending their impact to Formula One and the broader motorsport industry.
The tariff adjustments primarily affect U.S. carmakers, including Formula One teams such as Cadillac, Ford, and Haas. Cadillac’s operations, spread across Indiana, North Carolina, and Michigan, could face fewer obstacles in importing necessary components. Ford’s involvement with Red Bull Racing, though based in the UK, also benefits from mitigated tariff concerns, smoothing cross-border transfers.
Haas Automation, crucial in the motorsport sector, particularly feels the effects. With its primary CNC machine manufacturing base in North Carolina, any foreign retaliatory tariffs could have jeopardized its business.
“In recent days, we’ve seen a dramatic decrease in demand for our machine tools from both domestic and foreign customers. Out of caution, we have reduced production and eliminated overtime at our sole manufacturing plant in Oxnard, California, where we employ 1700 workers and have been in operation since 1983. We have also halted hiring and put new employment requisitions on hold.” – (Haas Automation)
The company preemptively reduced production and hiring, citing decreased demand in response to the initial tariff policies. However, Trump’s policy shift offers a reprieve. This development provides Haas and others in the industry a chance to stabilize and potentially thrive despite previous uncertainties.
“While tariffs will have a significant impact on Haas Automation’s business, we’re optimistic that the Trump Administration will come up with solutions to provide relief for U.S. manufacturers.” – (Haas Automation)
News in Brief: NASCAR Tariff Exemptions Impact
Rick Hendrick and Roger Penske benefited from the unexpected tariff exemptions implemented by the Trump administration, which alleviated industry concerns in NASCAR and IndyCar. These exemptions specifically addressed foreign-supplied parts, providing relief to motorsports teams reliant on these components.
The broader motorsports industry, including entities like Haas Automation, also experienced a positive impact. This development highlighted the essential relationship between government policy and the operational stability of high-profile racing teams and manufacturers.
ALSO READ: NASCAR’s New Race Tactics: Innovation or Reality TV Drama?
