General Motors President Mark Reuss has claimed that his auto company is facing $5billion in losses as a result of tariffs levied by President Donald Trump.

While Reuss is confident that these losses won’t impact the incoming Cadillac Formula 1 team, there are many ways the team can help offset those losses right from the start.

Cadillac F1 doesn’t expect Donald Trump tariffs to impact team

Since assuming the office of President of the United States in January, Donald Trump has levied sweeping 10% tariffs on imported goods from all countries, with certain countries facing greater tariffs.

While these tariffs have evolved quite regularly, the American automotive industry in particular has been bracing for impact, and many cars and components are assembled outside of the US.

It’s a challenging time for any automaker to join a multi-million dollar sport like Formula 1, but many have wondered how Cadillac — which is joining F1 in 2026 — will handle these changes.

During a round-table with select media ahead of the Miami Grand Prix, General Motors executives and Cadillac F1 team personnel were asked about the potential impact of prospective tariffs levied by US President Donald Trump.

But according to GM President Mark Reuss, the F1 program won’t face any serious hiccups.

“These are long-term footprints that we have that are very old in some cases, that have been there a long time, and so we’re working to bring as much as we can into the United States and avoid the tariffs, but not at all costs and it doesn’t happen overnight,” he explained.

“There’s no light switch that says: ‘oh, all of a sudden we’re tariff-free’.

“You probably would have seen over the last few days, we did earnings in the early part of the week, and then we came back and did the earnings review and guidance, and so in that second one, there’s about $5 billion of impact for us, but it’s not going to affect this project.”

$5 billion is a huge number, which makes it difficult to understand how exactly Cadillac F1 will emerge from these ongoing economic tensions unscathed — but there are several ways the new team can offset tariff-related losses.

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Cadillac F1 backers, investors will be key

Formula 1 teams are not wholly supported by the automakers they’re affiliated with, and this will be true for Cadillac F1 as well. This means that there will be specific individuals within the outfit that will be able to help conquer funding tasks.

Consider Dan Towriss, CEO of TWG Motorsports, which is fielding the Cadillac F1 entry. As the head of Gainbridge and Group 1001, Towriss has a personal pool of cash to pull from — and it was his investment in Andretti Autosport that allowed the outfit to expand its facilities and consider entering Formula 1 back in 2023.

And he has big-name friends who are in his corner. TWG Motorsports is a subsidiary of TWG Global, which is affiliated with Guggenheim Partners;  Guggenheim Partners CEO Mark Walter has an estimated net worth of around $5.2 billion.

The Cadillac F1 team can likely put some of its ongoing tariff concerns aside knowing that individual investors and backers can cover many of these early sourcing fees and operational costs.

Cadillac F1 is looking to title sponsors for assistance

In the same round-table in Miami, Dan Towriss explained that part of Cadillac’s “commercial strategy” involves securing a title partner — something extremely common in Formula 1.

These title partners are huge. Haas’ title partnership with MoneyGram, for example, is worth $20 million per year, while at the higher end of the spectrum, Mercedes receives $75 million per season from title partner Petronas.

And according to Towriss, Cadillac isn’t just looking at American companies to take on the title partner role.

“We certainly want to have key American brands as anchors as part of our plan, but we’re on a global stage, so this isn’t an America-only strategy,” he explained.

“So there are a lot of conversations happening. The interest has been tremendous from that standpoint as well and so a lot of that work has been taking place.”

And aside from title partners, F1 teams often strike smaller but still lucrative deals with the other brands that adorn their cars — which means Cadillac F1 should be able to bypass major tariff worries through the sponsorship path.

Cadillac F1 can find drivers with lucrative sponsor packages

Finally, Cadillac F1 can help cover its bills by signing drivers with impressive sponsorship packages.

One name regularly tied to Cadillac has been Mexican racer Sergio Perez, who is said to bring $30 million to any team he races for courtesy of packing from billionaire Carlos Slim and sponsors like Telcel, Disney, Claro, and KitKat.

Not every driver is going to come to a team bearing a multi-million dollar payday, but if Cadillac is looking to offset costs associated with tariffs, those well-funded drivers can make a big difference — if only until it finds additional revenue streams.

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