Haas Automation, the machine tools company run by Formula 1 team owner Gene Haas, has warned US president Donald Trump’s introduction of steep tariffs on goods is having a “significant impact” on its business.
The company employs thousands of workers in the US producing tools for manufacturing. Haas promotes its business using motorsport teams in F1 and NASCAR.Trump revealed the tariffs he would impose on imports from most of America’s trading partners last week and has raised some since then. As countries have responded by introducing tariffs of their own, growing fears of a global trade war have caused stock markets to plunge. The Standard and Poor’s 500, which tracks the stock performance of 500 leading companies in the US, has lost $5.83 trillion (£4.55tr) in value since Trump announced his tariffs a week ago.
Haas Automation described the hit its business has taken due to Trump’s tariffs in a statement, noting it is still “in the process of studying the full impact of tariffs on our operations.”
“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 1,700 workers and have been in operation since 1983. We have also halted hiring and put new employment requisitions on hold.”
Haas urged the US government to introduce “tariff exemptions for raw materials and components vital to the US machine tool industry and maintain tariffs for imported machine tools.”
Despite increasing tariffs well above the rates at which other countries previously applied them to American goods, Trump has tried to characterise his policy as “reciprocal.” Rather, Trump’s tariffs charge more to countries which sell more to America than they buy.
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Trump, who attended the Miami Grand Prix during his election campaign last year, has threatened other countries with further increases in tariffs if they raise theirs to match his. He initially applied a rate of 34% to Chinese imports, prompting Beijing to announce it would apply the same this week, following which Trump increased that tariff to 104%.
Haas joined F1 as a new team in 2016. It reduced the scale of its NASCAR operation this year, slimming down from a four-car team to one.
Haas F1 team said in a statement that Haas Automation’s announcement “does not have any impact regarding MoneyGram Haas F1 Team.”
“It’s business as usual regarding the team and there is no change to our development plan, recruiting process and other projects,” it added.
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MichaelN
9th April 2025, 8:24
Gene Haas has been donating to US Republican candidates for years, as can be seen on OpenSecrets. Bit late to complain now.
Daniel (@tamburello)
9th April 2025, 9:36
He hasn’t since Trump was the candidate: https://fivethirtyeight.com/features/inside-the-political-donation-history-of-wealthy-sports-owners/
JackL
9th April 2025, 14:04
I mean thats not exactly a redeeming point. The other candidates are still awful.
pcxmac (@pcxmac)
9th April 2025, 16:21
They are all tools and clowns for wall street.
The market was always going to tip over, the tariffs are the excuse.
Most people don’t have a clue about the real history of the United States, it’s civil war, or modern politics. Suffice it to say, New York/Wall Street owns this country.
MichaelN
9th April 2025, 17:00
He still donates to their party, and their members and senators enable the agenda.
And yes, he also donates to the other major party. Noone claimed US politics wasn’t pay to play.
But Gene Haas has nevertheless helped make this possible.
PlosslF1 (@f1-ploss)
9th April 2025, 12:21
A prime example of “I never thought leopards would eat MY face”
Kringle
9th April 2025, 12:38
Thanks for highlighting that to us. Oh dear Mr Haas…
anon
9th April 2025, 13:10
It’s a bit more complex than that poster suggests though, because that same website has confirmed that Gene has also donated money to the Democratic party and their candidates over that same time period.
JackL
9th April 2025, 14:05
He wants other tariffs to remain, just not on the raw materials and components he needs. Tell me you’re a selfish billionaire without telling me you’re a selfish billionaire.
MichaelN
9th April 2025, 19:19
Exactly. It is all fun and games until it affects them.
S Arkazam
9th April 2025, 8:42
If Haas is seeing declining demand from the US for its locally produced machine tools, then this more a sign of an expected recession than a (direct) result of the tariffs.
It also shows how shortsighted generic tariffs are in an open economy. Rather than boosts local production you see factories closing due to the general sentiment.
BasCB (@bascb)
9th April 2025, 14:40
Well, the recession (or rather the stark downturn on demand for their products they predict) is expected to set in due to the tariffs though.
I would say Haas is exemplary here for many companies in the USA in similar field of buisiness. After Biden’s policies helped boost investment in manufacturing in the USA in recent years, these tariffs will clearly put a damper on any investment plans that aren’t already well through the pipeline.
MichaelN
9th April 2025, 19:18
They may be locally assembled, but there’s no way the materials and specialised components aren’t from many different countries.
But hey, good to see the US get what it voted for. Silver lining and all that.
Ideals (@ideals)
9th April 2025, 10:39
If only anyone could have seen this coming before last November, but alas, we were all blindsighted by Donald Trump’s plans. At least we prevented the black woman from taking office, can you even imagine, Gene? Or did you not spend almost a million dollars this time on attack ads like you did against Obama?
The smallest violin is playing just for you, today.
Jezson
9th April 2025, 11:09
*Toyota joined the chat*
Bitten&Hisses (@al-perry)
9th April 2025, 14:06
Comment of the day
Dex
9th April 2025, 12:11
Sell the team. I’m sure there are willing Chinese buyers.
Ideals (@ideals)
9th April 2025, 12:54
I mean, maybe not with the 104% tax (or 84%, not sure who is importing who in this scenario)
Keith Campbell
9th April 2025, 12:38
Not sure if provisions for this already exist, but if not then adjustments should be made to the cost cap to factor in issues which are largely outside of the teams’ control, such as interest rates, inflation, or in this case a potential global trade war. The teams will still suffer of course, but at least they won’t have the double whammy of having to factor in cost rises of 10% plus into their budget cap restrictions.
Doggy
9th April 2025, 13:41
What we are / will be experiencing due to this abysmal economic policy, can be somehow how classified as some sort of force majeure.
Tariff that is over 100% is not something nearly remotely close to be normal market fluctuations. Therefore, opening the door to increasing F1 teams’ budget for this and following year is perfectly possible.
Also, I’m wondering what would happen with RBR and their partnership with Ford.
BasCB (@bascb)
9th April 2025, 14:42
I am pretty sure they have had some discussions about USD exchange rates, they adjusted the budgets with extra inflation money in recent years already.
Keith Campbell (@keithedin)
9th April 2025, 17:58
@bascb I remember there being discussions around adjusting the cap due to inflation a couple of years back, but couldn’t recall if they had agreed to an increase in the end.
MichaelN
9th April 2025, 19:16
There is an adjustment mechanism. Sauber benefits from this as well.
Matthias[Wlkp] (@matthias-wlkp)
9th April 2025, 13:01
Cadillac F1 Team might drop out before starting due to tariffs…
sam
9th April 2025, 17:11
So it’s ok to tariff America but not the other way around?
Not any more!
MacLeod (@macleod)
10th April 2025, 8:08
Normally when there is a treaty tariffs are locked as that is normal in the whole world. What the creature in the office did was certain NOT ok and when you start a war you get attacked too.
But using AI to set tariffs is an good way to destroy your own land and is only good for some billionairs to fill their pockets.
ppzzus (@ppzzus)
9th April 2025, 18:39
good thing Zak Brown invited him into the paddock with open arms.
Keith Collantine (@keithcollantine)
9th April 2025, 22:52
@ppzzus He was photographed with Brown but he was not a guest of McLaren.
Jay
10th April 2025, 2:06
A lot of stock market and American political experts on redd.. I mean racefans.net. Keep the predictions coming, its more amusing than the driver ratings threads!!
MacLeod (@macleod)
10th April 2025, 8:12
I know that I am not a expert but I am smart enough to listen to real experts. And lets not talk about American politics then I will sleep much better.
Ideals (@ideals)
10th April 2025, 11:10
When Trump is actively playing with my pension, even when I’m not American, you bet I’m paying attention and will form opinions on “American” politics.
PlosslF1 (@f1-ploss)
10th April 2025, 11:23
1-Sell stocks when its high
2-Crash the Markets and buy low
3-Unpause tariffs and watch the stocks rise
4-Rinse an repeat