American Tyre Tariffs! What happens next?
2
min. read
The big tyre tariff problem
He may have stepped back slightly with a 90-day delay. But President Donald Trump’s intended 25 per cent tyre tariff is expected to heavily impact global supply chains, pricing and production levels and strategies around the world.
The tariffs will affect all tyres manufactured outside of North America in order to strengthen US production and employment. Although American tyre businesses and analysts predict far reaching problems and consequences in their tyre market.
Tyre Media looks at the imminent implications if the new tariffs eventually come into effect. First it will definitely mean higher prices with imported tyres becoming more expensive when exporting to the US. At the same time global tyre manufacturers will find their product shifts affected and supply chains will be seriously disrupted with many tyre companies being forced to review their sourcing strategies. Plus, businesses who rely on importing tyres from Asia, Europe and Latin America will almost certainly be hit by higher costs and operational problems to solve.
Certainly, worldwide tensions and disruptions loom on the horizon for the global tyre market and countries with a significant exporting market could well introduce tariffs of their own. Which will further affect trading balance.
When the US tyre market last imposed tyre tariffs in 2009 of 35 per cent on Chinese tyre imports there was an immediate increase in imports into the country from South Korea, Indonesia and Thailand.
As the current situation is in limbo for the moment the worldwide tyre market is holding its breath that America’s unpredictable President will eventually relent and remove the tariffs. Which will enable the market to stabilize once more.
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