Donald Trump tariff concerns spark call for cost-effective F1 future

News from the United States of late has largely centered around talk of tariffs — whether or not President Trump will levy them on other countries, and how those countries will respond.

With a high level of uncertainty surrounding these tariffs, it’s difficult to say exactly how they could impact Formula 1, but team principals like Christian Horner have suggestions on how the sport can weather the storm.

Christian Horner speaks out on impact of US tariffs

Additional reporting by Thomas Maher

While US president Donald Trump may not have a concrete plan in place for the introduction of tariffs, Formula 1 teams are already considering the impact those tariffs could have on the sport.

In early April, Trump implemented an across-the-board 10% tariff on all countries importing goods to the United States, with additional tariffs levied in response to a perceived trade deficit.

Soon after, however, Trump then said he intended to delay the date the tariffs went into effect and to provide exemptions for certain goods.

Formula 1 is a global sport, and these tariffs — should the be implemented — promise to upset the current rhythms of global trade, though it’s unclear to what extent they will do so.

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Due to the constantly fluctuating nature of the tariffs, few in the F1 paddock have leaped to make sweeping changes.

In Bahrain, Red Bull Racing team boss Christian Horner was asked if he felt the tariffs — should they be enacted — would have a significant impact on the sport of Formula 1.

“I think in terms of supply, no,” he responded, “but in terms of how it will affect the different automotive manufacturers — of course, it will have an enormous impact.

“So therefore Formula 1 has to safeguard itself for the future, and I think nobody would disagree on a more cost-effective engine for the future so long as it’s sustainable and ticks various boxes.

“Now the big question is, what is the spec of that engine? Is it a V10? Is it a V8? Does it have a turbo? Does it not? How big though the battery content be? Is it a standard battery?

“There’s some big fundamental questions that are being asked, but they’re being asked in the right forum.

“Probably the reality is that, you know, everybody has a slightly different outlook, and it’s down to Liberty and the FIA at the end of the day to say, this is what we want to do for Formula 1.

“This is what is best for the sport. And then ultimately the OEMs will decided whether that’s right for them or not.”

Improvements in both cost and sustainability have been key guiding factors for Formula 1 over recent years, with the cost cap joining hybridization and the use of sustainable fuel as a guiding path forward.

However, the incoming Concorde Agreement has introduced tweaks to the cost cap in light of inflation, and should the United States introduce any additional tariffs, it’s very likely that the sport would be forced to respond.

Further, the ongoing interest of American brands and companies like Haas, Ford, and Cadillac will likely be affected by any potential tariffs in ways we can’t fully predict.

But Horner is correct; Liberty Media and the FIA will both have to keep tabs on the ever-evolving situation in order to continue growing the sport.

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