Highlights
 

• U.S. tire shipments projected at a record 340.2 million units in 2025
   
• Dynamics shift, with Chinese tire imports falling and SE Asian imports rising
   
• Top players pursue expansion, innovation, and portfolio revamp
   

The U.S. tire industry is treading a path of cautious optimism in 2025, balancing strong market demand against the backdrop of regulatory pressures and trade disruptions. Manufacturers and distributors are navigating a complex environment shaped by tariffs, shifting import patterns, and emerging technological innovations, all while striving to maintain profitability and market share.
 

Despite tariff barriers, the projections from the U.S. Tire Manufacturers Association (USTMA) in July 2025 indicate that total tire shipments for the year would reach 340.2 million units, surpassing the previous record of 337.3 million units set in 2024. This growth reflects robust demand across both original equipment (OE) and replacement tire markets, highlighting a resilient consumer base despite reshaping market dynamics.
 

The first half of 2025 reportedly saw 143.43 million tire imports, up 6.8% year-on-year, with the second quarter alone registering 72.76 million units. Passenger car tires were the main drivers of this growth, increasing by 3% year-on-year in the first half to 84.89 million units, while truck tire imports increased by 10% year-on-year to 32.32 million units. The tariff barrier appears not to have had much impact in its initial phase.
 

However, Chinese tire imports, the second-largest contributor, facing stonewalling from Trump, experienced a sharp decline. Passenger car tire imports from China fell 35% to 510,000 units, and truck tire imports dropped 16% to 700,000 units. Conversely, imports from Thailand, the top contributor, increased 12% to 36 million tires, reflecting a regional reshuffling of supply sources as manufacturers and suppliers navigate shifting tariffs and supply chain complexities.
 

Import Dynamics and Tariffs
 

Tariffs have been a defining feature of the U.S. tire sector in 2025. Levies ranging from 10% to 50% on tires imported from different countries have not only reshaped competitive dynamics but also affected pricing for end consumers. While domestic producers benefit from reduced competition from low-cost imports, tariffs also increase input costs.
 

These trade measures have prompted a strategic shift in sourcing. Thailand, for example, witnessing the lowering of tariffs, has emerged as a more prominent supplier, while imports from China have receded sharply. Meanwhile, other Southeast Asian countries, including Vietnam and Cambodia, facing lesser tariffs now, have increased their shipments, seeking to capitalize on the gap left by declining Chinese imports.
 

Cambodia’s passenger tire exports jumped 56% in the first half of 2025, while in light trucks, the increase was 75%, with the country advancing from the eighth-largest supplier to the fourth-largest. Vietnam remains the third-largest supplier to the US with 10.9 million units. This trend underscores how policy decisions can accelerate shifts in global supply chains and affect the strategic planning of major tire manufacturers.
 

Manufacturer Strategies and Market Adaptation
 

Major tire companies have responded to these challenges with a combination of production expansion, technological innovation, and portfolio restructuring. Bridgestone announced plans to increase North American production by 2 million tires annually by 2027, focusing on facilities in Aiken, South Carolina, and Wilson, North Carolina. This move is designed to mitigate tariff impacts and ensure regional supply meets growing demand. However, the company also made the difficult decision to close its LaVergne, Tennessee, truck tire plant effective July 31, 2025, resulting in 700 layoffs, reflecting the fine balance between expansion and operational efficiency. Bridgestone has additionally introduced the Turanza EverDrive, a touring tire for sedans and CUVs, in Q2 2025 showcasing its commitment to technological enhancement.
 

Pirelli, meanwhile, remains under U.S. scrutiny due to its Chinese shareholder, Sinochem, which holds a 37% stake. The U.S. government has warned that vehicles equipped with Pirelli’s Cyber Tyre technology—capable of transmitting real-time driving data—could face restrictions due to national security concerns. Pirelli’s Italian management has been seeking to limit Sinochem’s influence through governance measures, and the Chinese major, on the other hand, is now reportedly toying with the idea of stake sale after the Italian government recently cleared Sinochem of charges of breaching governance rules in Pirelli, concluding a months-long investigation into alleged "golden power" violations. These developments highlight how geopolitical and investment considerations now intersect with tire technology advancements and market access.
 

Goodyear, the largest tire manufacturer in the US, pursued a different approach by divesting its Dunlop brand to Japan’s Sumitomo Rubber Industries for US$735 million in the Q2 2025, allowing it to concentrate on its core U.S. operations. The divestment also applies to Europe and Oceania. Despite a 2.6% decline in tire volume in Q2, Goodyear’s earnings per share improved, signaling effective portfolio management and operational resilience. Additionally, the company is advancing its SightLine smart tire technology with an advanced anti-lock brake system, which has the potential to reduce stopping distance by nearly six feet—a critical advantage as regulatory requirements evolve in the U.S. automotive sector.
 

Another tire maker Nokian Tyres is extending its research and development capabilities to North America to better support the local market and serve its growing customer base in the United States and Canada. The North American Research and Development unit is a local function working in close collaboration with Nokian Tyres Finland-led R&D activities. In another development, Sailun Tire USA has acquired Vogue Tyre, a premium tire provider with a 110-year legacy, accelerating Sailun’s expansion into the premium segment.
 

Labor trends are similarly notable. USTMA member companies operate 55 tire-related manufacturing facilities in 16 states. U.S. tire manufacturing has an annual economic footprint of US$170.6 billion and is responsible for more than 291,000 U.S. jobs in manufacturing, distribution and retailing. The industry also supports more than 510,000 additional U.S. jobs in supplier and induced activities.
 

However, the July and August 2025 employment update indicated stagnation in the manufacturing sector, suggesting that job growth in tire production remains under pressure despite increased demand and production expansion bids. The labor trend emphasizes the need for manufacturers to strategically manage human resources while navigating operational and trade challenges.
 

Outlook and Strategic Implications
 

Looking ahead, the U.S. tire sector faces a complex mix of growth opportunities and risks. Demand remains robust, driven by replacement markets and OE requirements, yet tariffs and regulatory scrutiny require careful navigation. Manufacturers are under pressure to invest in domestic production, technology development, and portfolio optimization to maintain competitiveness.
 

The broader lesson of 2025 is clear: success in the U.S. tire market requires agility. Companies must respond not only to market and consumer demand but also to the shifting regulatory landscape, geopolitical influences, and environmental imperatives. Those that combine operational efficiency with innovation and strategic foresight are likely to emerge stronger in a market that is as dynamic as it is challenging.

The expansion plans of major US tire manufacturers and continued growth in OE and replacement tire sales also imply a steady pull on natural rubber demand through 2025 and into 2026. Although a share of this requirement will be met by synthetic rubber, sustained tire production momentum in the U.S. is expected to lend firm support to global natural rubber consumption and prices, even as other key regions show uneven trends. 

On the supply side, global NR production is projected to rise only marginally this year. Incremental increases from a broader mix of producers may induce availability, but not enough to significantly shift the balance, with demand too inching up. As a result, global natural rubber prices are likely to stay range-bound, supported by steady industrial demand yet contained by limited, but sufficiently distributed, supply growth—underscoring a cautiously balanced market outlook for the rest of 2025.