Just weeks after the U.S. reinstated a 25% duty on Chinese passenger car and light truck tyres, President Trump’s administration has intensified trade actions with a sweeping new tariff policy targeting Chinese imports—raising duties on some goods to as high as 145%. Among the most affected sectors is the tyre industry, now grappling with far-reaching impacts across global supply chains, trade flows, and pricing.
As of 3 May 2025, U.S. authorities have applied:
These duties are layered on top of existing anti-dumping and countervailing measures that have affected Chinese truck and bus tyres since 2019, where combined duties range from 30% to 86%.
China has responded with retaliatory tariffs of up to 125% on U.S. goods, deepening the trade rift.
Chinese tyre manufacturers have been adapting by expanding production in countries such as Thailand, Vietnam, and Cambodia. Companies are increasingly using offshore factories to serve U.S. customers while avoiding direct tariffs.
However, the U.S. is now also examining transshipment routes and may apply future tariffs to tyres produced in foreign facilities owned by Chinese firms - creating uncertainty for exporters and their customers.
📉 Chinese TBR tyre exports to the U.S. fell 40.6% in 2024, and passenger tyre volumes are also declining.
As importers adjust to higher duties, price increases are being passed on to retailers and fleet customers. U.S. consumers face elevated prices for premium tyres from Japan and Europe, while lower-cost Chinese brands (despite tariffs) may still appeal due to their price advantage.
In 2024:
The growing price gap has become more relevant as consumers shift towards budget-friendly alternatives in a high-inflation environment.
Global tyre manufacturers are restructuring supply chains and rethinking investment decisions. Some are stockpiling inventory ahead of further levies, while others may reduce product offerings or delay expansion plans.
In developing economies such as Vietnam and Indonesia (now subject to tariffs up to 46%) the risk of recession is increasing due to their export reliance.
Meanwhile, U.S. tyre importers face a complex landscape of fluctuating costs, origin restrictions, and compliance risks.
Passenger Car Tyres
Tariffs have made mid- and premium-tier passenger tyres from Japan and Europe significantly more expensive in the U.S., with importers facing tough decisions on pricing and product range. Cheaper Chinese brands, even when subject to tariffs, may remain attractive to cost-conscious U.S. consumers.
Commercial Vehicle Tyres (Truck & Bus)
China’s TBR tyre exports have sharply declined, reflecting both past anti-dumping penalties and the new 34% reciprocal duty. Fleet operators face higher operating costs, and sourcing is shifting towards manufacturers in Thailand and South Korea. U.S. retreaders may see marginal benefit as fleets reassess total cost of ownership.
Light Commercial Vehicles (LCV)
LCV tyre importers are affected by the blanket 25% duty on auto parts, which covers many van tyre categories. Smaller logistics providers and regional fleets could be disproportionately impacted due to limited supplier flexibility.
OEM Supply Chains
Carmakers sourcing OE tyres from Chinese suppliers now face increased costs or sourcing disruptions, potentially influencing vehicle pricing or configuration options for U.S.-bound models.
The tariff escalation is not only an economic flashpoint but a stress test for the tyre industry’s resilience and adaptability. Offshore manufacturing investments, dynamic sourcing strategies, and agile pricing models are becoming essential tools for tyre manufacturers navigating geopolitical turbulence. This shift underscores the strategic importance of flexible production capacity and a globally distributed footprint, especially for companies looking to support OEM contracts and maintain competitiveness in a volatile regulatory environment.
Related: U.S. Tyre Tariffs Return: What Trump’s 25% Duty Means for the Industry
Tagged with: U.S. tyre tariffs, Chinese tyre exports, tyre trade war 2025, global tyre pricing, automotive tariffs, Trump tariffs, tyre import duties, tyre industry trends
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