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Sports have been the constant that usually gives people eternal hope and optimism. Just as surely as the sun will come up tomorrow, we can usually rest assured that we will be able to see our favorite team on the field, court, or ice when the season comes along. And we can be also assured that we are overpaying for that hotdog or beer when we go to a game. But that can’t be said so much nowadays with a looming trade war between the United States and its allies such as Canada and Mexico, and even stronger posturing against its adversaries such as China. Sports seem to be well insulated from these pressures, but because we are in such a globally connected world, analysts are worried that this is not the case.[1] The part of the sports industry most directly affected from the prospect of tariffs set forth by President Donald Trump would not surprisingly be sporting goods, largely made overseas in places like China.[2] And those overpriced concessions? They could be even costlier, to the point where they may even be prohibitively expensive.[3] Many of the raw goods used in stadium concessions come from places like Canada, Mexico, and China which, if tariffs are imposed, means that the vendors will have to pass on those price increases to the consumer.[4] More broadly, trade conflicts generally tend to increase inflation as a whole, raising the price of everything from tickets to being able to even afford to watch your favorite team on television, either by increasing the price of your cable or streaming subscription, or by increasing the price to go out to watch at your local watering hole, which derive much of its[HD1] revenue from sporting events.[5] One of the biggest indirect effects of a trade war is the weaking of the US dollar against the currencies of our trading partners. A weakening dollar makes it much more expensive for those who purchase goods in foreign currencies.[6]
But this is not the first time that the sports industry has dealt with a looming trade war. In 2019, under Donald Trump’s first term as president, the NBA had to navigate increasingly hostile relations between the United States and China.[7] A large part of team and league revenue comes from, as stated by the prophet Yogurt in Mel Brooks’s classic “Spaceballs”, “merchandising, merchandising!” You may start to see sporting good and merchandising manufacturers start to reallocate their production of goods in China and selling it in the Chinese market.[8] This will mean having to find a new domestic producer in the United States, which would make that coveted jersey or sweatshirt even more expensive, making it harder for US businesses to sell these kinds of goods to push their product. This may also increase the black market for counterfeit goods, as legitimately licensed goods become more expensive.[9]
[1] https://www.sportico.com/business/finance/2025/tariffs-affect-sports-stocks-1234842371/
[2] Id.
[3] Id.
[4] Id.
[5] https://totalfood.com/impact-sporting-events-restaurant-traffic-revenue/
[6] See supra note 1.
[7] https://www.nba.com/news/us-china-trade-wars-could-affect-nba-fans
[8] Id.
[9] Id.
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