Will Trump Tariffs Impact the World Cup and Olympics?

The import tariff policy by United States President Donald Trump will be implemented amidst the country's preparations to host several of the world's largest sporting events in the coming years. Among them are the 2026 World Cup and the Los Angeles 2028 Olympics and Paralympics.

These events are intended to provide opportunities for foreign businesses to enhance their profile and sales in the United States. However, questions arise as to whether these opportunities remain available after Donald Trump announced a new list of base tariffs and import duties on Wednesday (2/4/2025) local time.

I suspect that several sponsors are now reassessing how they 'activate' such agreements in the U.S., considering the trade barriers that have now been imposed.

Trump imposed an average tariff of 10 percent on imported goods from around the world as of April 5, 2025. Trump also implemented a "reciprocal tariff" on several countries effective April 9, 2025. This includes 20 percent on the European Union, 34 percent on Asian countries such as China, and 25 percent on South Korea.

The Korean car manufacturer, Hyundai Group, previously sought to leverage its sponsorship agreement with FIFA during this year's Club World Cup in the US and later the 2026 World Cup. However, sports event bidding strategist John Zerafa believes that sponsors, including Hyundai, will reconsider the agreement.

"I suspect that some sponsors are now reassessing how they 'activate' such agreements in the U.S., given the trade barriers that have now been imposed," said John Zerafa.

"Why would sponsors spend millions of pounds doing that if selling in America is now banned?" he said.

Many sports teams and athletes are also sponsored by sportswear brands. Meanwhile, most of these companies rely on materials and manufacturing in Asia, where Trump has imposed some of the highest tariffs. In addition to China with 34 percent, Trump has also imposed tariffs of 49 percent on Cambodia, 46 percent on Vietnam, 36 percent on Thailand, and 32 percent on Indonesia.

It's no surprise that shares in companies like Nike, Adidas and Puma have fallen sharply, given concerns that higher import costs will be passed on to consumers.

However, sports finance expert Kieran Maguire said the impact of high tariffs on sales of sports products should be limited. "Consumers are used to paying premium prices in sports retail. Manufacturers and retailers should absorb some of this, and it should not impact the volumes sold or the commissions that clubs receive from selling merchandise," Maguire said.

Canada and Mexico, which are co-hosting the 2026 World Cup, have also been hit with import duties of up to 25 percent. Both countries are reportedly ready to retaliate against the tariffs.

Seven years ago, when the co-hosting bid was approved, the rifts caused by tariffs and a proposed border wall were glossed over. At the time, U.S. Soccer Federation President Carlos Cordeiro said the main theme was “the unity of three countries.”

Last month, Trump claimed political and economic tensions between the US and the World Cup hosts would be good for the tournament. "I think it will make it more interesting. Tensions are a good thing," he said.

The U.S. and Canadian soccer federations declined AP requests for comment on how the White House policy could affect the 2026 World Cup. Gabriela Cuevas, who represented the Mexican government in meetings with FIFA, said she considered the tariffs and the soccer event separate issues.

“The World Cup can be a pathway to engage in conversation,” Cuevas added.

Analysts tend to agree, saying logistics such as security cooperation or transporting teams from city to city or country to country should not be hampered when it comes to the World Cup, which is scheduled to take place in 16 cities in the U.S., Canada and Mexico from June 11 to July 19, 2026.

But the border issue is back in the spotlight. Victor Matheson, an economics professor at the College of the Holy Cross in Worcester, Massachusetts, said FIFA should be paying attention because what passes between these countries is not car parts, wheat or electricity.

“But human beings. That is your real concern,” Victor Matheson said.

"What was previously a border crossing could become much more challenging, simply because both sides are increasing their levels of inspection. And the United States, in particular, is cutting back on government services that allow people to move effectively between countries," he said.

On the other hand, former President of the US Soccer Federation and the one who ran the 1994 World Cup in the country, Alan Rothenberg, is optimistic that the 2026 World Cup will still attract viewers. He cited the last two World Cups, in Russia 2018 and Qatar 2022, which invited concerns but still attracted viewers of over 3 million people.

Rothenberg also doesn't think any of the host nations will pull out of the World Cup. Or that others might boycott, as happened at the 1976 Montreal, 1980 Moscow and 1984 Los Angeles Olympics.

“More than anything, they will see it as an opportunity for, perhaps, rapprochement, rather than increasing tensions,” Rothenberg said.

“Also, from an organizational standpoint, if Canada or Mexico were to withdraw from the World Cup, the U.S. would immediately take over the games,” he said.

Meanwhile, regarding the Olympics, Kirsty Coventry, after being elected president of the International Olympic Committee, touched on how to work with Trump in preparation for the 2028 Los Angeles Olympics. Coventry said she was used to dealing with “difficult men” in high positions.

“First and foremost, what I learned is that communication is going to be key. That’s something that’s going to happen from the beginning. And my strong belief is that President Trump is a sports lover. He wants this Olympics to matter. He wants this Olympics to be a success,” Coventry said.

Referring to concerns about whether the US government would deny visas to some athletes, Coventry added that they would not abandon their values. That includes the value of solidarity in ensuring every athlete who is eligible for the Games has the possibility to attend the Games and be safe during the Games.

The main assumption among those involved in the Olympics is that Trump will ensure the 2028 Games are a success. That was also implied by statements by U.S. Olympic and Paralympic Committee Chairman Gene Sykes.

"I can't speak for him, but I think he's the kind of person who probably believes that the Olympics going so well is a reflection of his leadership," Skyes said. (AP/BBC)