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Under the backdrop of the trade war, the opportunities and challenges faced by China's tire industry.
04 09, 2025
Amid the escalating U.S.-China trade war, U.S. tariff policies targeting China’s tire industry (e.g., 34% tariffs on Chinese goods, and 46%, 36%, and 49% tariffs on Southeast Asian countries like Vietnam, Thailand, and Cambodia) pose significant challenges but also create new opportunities for Chinese enterprises. Below is an analysis of both aspects:
I. Challenges
Surge in Export Costs & Declining Competitiveness in the U.S. Market
The U.S. is a critical export market for Chinese tires, but tariffs directly raise prices. If companies absorb tariffs, profits shrink; if passed to consumers, sales may drop.
High U.S. tariffs on Southeast Asia block transshipment routes (e.g., via Thai/Vietnamese factories), undermining supply chain tax-avoidance strategies.
Supply Chain Restructuring Pressure & Overseas Investment Risks
Chinese tire factories in Southeast Asia (Thailand, Vietnam, Cambodia) face tariff impacts, with new plants struggling due to long payback periods.
Tightening U.S. "de-Chinaization" rules may raise compliance costs and supply chain risks.
II. Opportunities
Cost Advantages & Potential Market Expansion
Chinese tires remain competitive post-tariffs (30-50% cheaper than EU/Japan/Korea brands). CITIC Securities predicts U.S. market share could rise from <50%.
Slow, costly U.S. domestic production creates a window for Chinese firms.
Forced Industrial Upgrading & Innovation
Tariff pressures drive R&D investments in high-value products (e.g., EV/smart tires).
Industry consolidation may strengthen leading firms via tech barriers and economies of scale.
Market Diversification & Global Expansion
Accelerated entry into ASEAN, Africa, and South America. In 2024, ASEAN surpassed the U.S. as China’s top export market.
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