Replacement Truck Tire Prices to Rise in May Due to Tariffs
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Replacement truck tire prices are set to rise in the U.S. as a result of the trade policies of the Trump administration.
In the latest tariff-induced cost increase for fleets, at least two global tire manufacturers will hike their replacement truck tire prices starting May 1.
Truck manufacturers already warned carriers of price increases due to the tariffs introduced in recent weeks, and the Trump administration is also investigating whether to impose tariffs on imported medium- and heavy-duty trucks.
All of which may delay any long-awaited rebound in the freight environment, particularly with economic forecasts deteriorating due to the uncertainty swirling around international trade policy.
Market observers say fleets can expect more replacement tire price hikes in the coming weeks and months as tariffs on rubber imports and all goods from some of the top tire exporting countries to the United States are passed through to customers.
Yokohama Tire on April 24 announced a price increase of up to 10% on its commercial truck tires sold in the U.S. as well as for consumer replacement tires effective May 1.
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Chief Operating Officer Stan Chandgie said the increase was in response to an “unparalleled rise in costs associated with materials and finished goods.”
Yokohama manufactures commercial truck tires in West Point, Miss.
Sumitomo Rubber North America also plans to raise its commercial truck tire prices by 10% on May 1. Prices for Sumitomo’s passenger vehicle and light truck tires will increase by up to 25%.
Goodyear also plans to increase U.S. and Canadian base prices for some of its passenger vehicle tires on the back of higher costs, the company said in a statement to the media. The price of truck tires will not increase as yet, a spokeswoman told Transport Topics April 24.
Goodyear manufactures commercial truck tires in Topeka, Kan., and Danville, Va.
All U.S. tire manufacturers’ raw material costs will rise. The U.S. must import all its natural rubber needs. Much like for coffee and cocoa, growing conditions in the U.S. are unsuitable for natural rubber.
A Goodyear facility in Thailand. (Goodyear)
Thailand is the top-ranked producer, supplying about 35% of the world’s natural rubber. The rest of the top five largest producers comprise Indonesia, Vietnam, India and China.
Reciprocal tariff rates announced April 2 include 37% for Thailand, 32% for Indonesia, 46% for Vietnam, 26% for India and 145% for China.
Truck tires contain a higher proportion of natural rubber than passenger vehicle tires.
In addition to the levies on rubber imports, benchmark natural rubber prices have been on an upswing of late, according to International Monetary Fund data, increasing from 94.75 cents per pound in July 2024 to 108.63 cents per pound in March.
Prices have decreased since February, however, due to concerns about global economic growth and consequently demand for tires, home appliances and footwear.
The International Monetary Fund in its latest World Economic Outlook forecast said U.S. economic growth is expected to slow to 1.8% in 2025 compared with a forecast of 2.7% growth in January.
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Global growth is projected to drop to 2.8% in 2025 and 3% in 2026, compared with January expectations of 3.3% for both years, the multilateral financial institution said April 22.
Tire manufacturers without production assets in the United States will find their costs increasing in the U.S. as a result of baseline 10% tariffs on all U.S. imports, Section 232 tariffs on automobiles and automotive parts and Trump administration plans for further levies when a 90-day pause expires.
A record 63.4% of tires sold in the U.S. were imported in 2024.
Thailand was the No. 1 exporter of tires to the U.S., accounting for nearly one in four tire imports, Indonesia was the No. 3 exporter of tires to the U.S., Vietnam the No. 4 exporter to the U.S., and South Korea the No. 5 exporter, according to JP Morgan analyst Ryan Brinkman.
The top five truck and bus tire exporters to the U.S. are Thailand, Canada, Vietnam, Japan and Cambodia, UN Comtrade data shows.
Apollo Tires, which expanded its U.S. truck tire portfolio and sales options in recent months, manufactures tires in its Indian homeland, the Netherlands and Hungary. Imports from the latter two nations received the baseline 10% tariff.
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“While the proposed tariffs are significant, Apollo’s approach is to minimize the impact on our customers, wherever possible. However, some of these increased costs may ultimately need to be passed through, which will be consistent with actions being taken across the industry,” Apollo National Sales Head Gavin Broussard told TT in an email.
“Apollo has not made any tariff-related price changes at this time. We remain committed to staying market-facing and competitive, while ensuring our partners are well positioned in a changing market,” Broussard said.
“While there is currently no announced timeline for a U.S. manufacturing facility, Apollo continues to invest in the market and evaluate future opportunities, as part of our long-term growth strategy,” he said, adding: “Apollo is fully committed to the U.S. as a strategic growth market and we are here to stay.”
Carriers’ uncertainty about costs as a result of the introduction of the tariffs by the Trump administration was likened by a senior executive at a Top 15 for-hire carrier to “walking through a maze blindfolded in the dark.”
“It’s 3D whack-a-mole. That’s how fast this thing is,” the executive told TT.
ING analyst Rico Luman said backtracking on the automotive parts tariffs — which includes tires — was unlikely in the extreme. As a result, further price hikes are likely, Luman said in an email.
Another factor in the expected increases is recent commercial truck tire manufacturing facility closures.
In November, Sumitomo Rubber USA shut its Tonawanda, N.Y., plant due to increasing costs and losses at the same time as competition became stiffer with imports rising.
Bridgestone Americas closed its LaVergne, Tenn., truck and bus tire plant. (Bridgestone)
Then, in January, Bridgestone Americas closed its LaVergne, Tenn., truck and bus tire plant. LaVergne was the first tire-manufacturing facility in North America for Bridgestone.
Bridgestone still manufactures medium- and heavy-duty truck and bus tires in the U.S. at its Morrison, Tenn., plant.
Representatives for Bridgestone were not available for comment on whether the company would be increasing its truck tire prices.
Michelin produces commercial truck tires in Spartanburg, S.C., and a company spokesman said: “Consistent with our local-to-local strategy, Michelin manufactures tires close to the markets where they are sold. We are assessing the potential impact of the most recent tariff announcements made by the Trump administration on April 2. At this stage, it is too early to provide specific details.”
