Goodyear mulls market-impact of tariffs, cheap imports in 2025

Akron, Ohio – Goodyear Tire & Rubber Co. is weighing up the potential impact of low-cost imports and tariffs on global tire markets and the group’s own business performance in 2025.

Of particular concern are the volumes of cheap, low-cost imports entering consumer tire markets in the US, Europe and Brazil, CEO & president Mark Stewart said on a conference call with investment analysts.

Levels of these imports have been “unusually high” over the last two years, Stewart noted during the 14 Feb discussion of Goodyear’s 2024 financial results (ERJ report) and prospects for the year ahead.

“In the US, many of these cheap tires come from southeast Asia, where some countries either aren’t subject to US tariffs or have found ways to avoid them,” he stated.

Goodyear, he added, has been “quite active in our discussions with government officials, emphasising the significance of Goodyear having the largest manufacturing footprint in the US.

“We look forward to continuing our collaborations with the leaders in Washington as we work to address these critical issues impacting our business.”

On the flip-side, the Akron tire maker has also highlighted the potential downside of imposing tariffs on the US’s immediate neighbours, to the Washington administration.

Both Canada and Mexico, which now face tariffs, represent key sources of tire production for Goodyear and its leading competitors, Stewart pointed out.

Tier 1 tire makers, including Goodyear, source volumes “from factories located in all three USMCA [US-Mexico-Canada agreement] countries to support both OE [and] replacement customers in the US,” he said.

For her part, Goodyear executive VP and CFO Christina Zamarro said the potential tariff impacts related to Canada and Mexico are difficult to predict.

Elsewhere, Zamarro envisaged an upside from “growth in volumes and price-mix related to the potential for US tariffs impacting countries outside of those currently contemplated.”

Furthermore, she said, Goodyear anticipated that “the European Commission may make a tariff determination as to unfair competition related to consumer tire imports in the coming months.”