US Tariffs and Tyre Prices: Should You Buy Now?

As a smart and savvy Aussie motorist who likes to keep one eye on the news and one on the road, you’re probably wondering how the new U.S. tariffs will affect the automotive industry and if you should dash out and buy new tyres before prices skyrocket. Let’s delve into the nitty-gritty of how Mr. Trump’s highly publicised tariffs might affect your wallet here in Australia.

Understanding the U.S. Tariffs

Since President Donald Trump took office on January 20^th, 2025, the U.S. has been on a tariff spree, slapping duties on imports from various countries, including China, Mexico, and Canada.

These tariffs target a range of products, notably steel and aluminium—key materials in tyre manufacturing. (Reuters)

Plus, the most recent round of U.S. tariffs includes increased duties on automotive components, which may also lead to disruptions in global tyre pricing.

So while the Australian government had hoped to earn an exemption to the U.S. tariffs, (preserving the trade dynamic between the nations) just a week it was announced that a 25% tariff would also be imposed on all imports of Australian steel and aluminium into the US.

There is now potential for the effects of what is happening in America to still trickle down through the Australian economy and automotive supply chain. (Modern Tyre Dealer) to affect Aussie tyre buyers.

The impact on your favourite tyre brands

The USA makes a comparatively low proportion of the world’s tyres – so it is justifiable if you are not worried about the cost of your next set of tyres because your favourite tyre brand is European or Asian.

But almost all most major tyre brands rely heavily on factories in China and Southeast Asia for the manufacture of their products, so any tariffs on Chinese goods could push prices up globally.

Tyre industry experts currently believe that even if Australian imports come from non-U.S. sources, overall production costs may rise due to global raw material price hikes, and drive up tyre prices in our market. (Blackcircles)

Here’s a breakdown of where Australia’s leading tyre brands manufacture most of  their products:

• Michelin: France, Germany, USA, Thailand, China, and India
• Bridgestone: Japan, USA, Thailand, and China
• Goodyear: USA, China, Germany, and Poland
• Pirelli: Italy, China, Brazil, and Mexico
• Hankook: South Korea, Hungary, China, and Indonesia
• Dunlop: Primarily Japan, but also manufactured in China and Thailand

The domino effect on Aussie Tyre Prices

A global raw material price hike may only be the first of many factors that can effect the price of tyres in Australia. If you’re thinking, “I still don’t believe U.S. tariffs will impact tyre prices in Australia”, here’s how the dominoes could fall:

• Increased Production Costs: Tariffs on raw materials like steel and aluminum hike up manufacturing expenses. Tyre makers, facing slimmer margins, may pass these costs down the line. (Tyre Review)
• Supply Chain Disruptions: Trade tensions can throw a wrench into the global supply chain, causing delays and shortages. This uncertainty often leads to price adjustments to cushion the blow.
• Shifts in Global Demand: If Chinese-made tyres become more expensive in the U.S., manufacturers may redirect their supply to other markets, including Australia, potentially leading to higher demand for that tier of product and increasing their prices, globally.

A Glimpse into the Past: Tariffs and Tyre Prices

History has shown that tariffs can have a tangible impact on tyre prices:

• 2009 U.S. Tariffs on Chinese Tyres: The U.S. slapped a 35% tariff on Chinese tyre imports, aiming to protect domestic jobs. While it did save some jobs, consumers ended up paying about $1.1 billion more for tyres. (CNN Money)
• 2020 Pandemic-Related Price Hikes: Supply chain disruptions and raw material shortages led to tyre price increases of up to 20% globally. Many consumers experienced sticker shock when replacing their tyres. (Forbes)

Other Factors Determining Tyre Prices in Recent Years.

Of course, not everything happening in the global tyre market can be blamed on tariffs, and it’s certainly not all doom and gloom either. Several factors have contributed to higher tyre prices in recent years:

• Increased Raw Material Costs: Rubber, steel, and synthetic compounds have all seen price increases.
• Freight and Shipping Costs: The cost of shipping has surged, affecting tyre import prices.
• Inflation: The general increase in costs across all industries has had a knock-on effect on tyre pricing.
• Eco-Friendly Regulations: Stricter environmental policies have pushed manufacturers to invest in greener production processes, which sometimes come at a higher cost.

Likewise, there are a number of really positive things happening in global tyre production that we can all feel good about and that may lowers the overall cost for consumers in the long run.

• Advances in Manufacturing Technology:The development of more efficient manufacturing processes, including automation, has led to reduced production costs.
• Improved Durability and Longer Lifespan: With a considerable focus on the development of new EV tyres and better eco-tyres over the last 5 years, tyre manufacturers can now boast tread designs and materials that enable tyres to that last longer and perform better than ever before.
• Innovation: Latest innovations including tread compounds that resist wear, and technologies like “self-healing” tires and longer-lasting rubber will reduce the frequency of tyre replacement. This
• Mobile Tyre Shops: Even the way Australians change their tyres has changed dramatically over the last decade. People can save time and money by having the tyre shop come to them. Digital-first tyre retailers like Mobile Tyre Shop give consumers full price transparency and do not add a delivery and fitting fee to the manufacturer’s price. The price you see when you are shopping online is the price you pay to have them fitted and balanced onsite.

The Australian Angle: Should You Buy Tyres Now?

So now you understand the nature of Mr. Trump’s tariffs, their potential effect of the global tyre market, and the other factors influencing the price off your next set of tyres here in Australia. But now, the burning question: Should you rush out and buy new tyres before prices potentially climb?

Here’s what to consider moving forward:

• Current Market Conditions: The Australian tyre market is projected to grow steadily, with a compound annual growth rate (CAGR) of around 4% from 2022 to 2027. (Markntel Advisors) This growth suggests a stable demand, which could assist in keeping pricing steady.
• Consumer Sentiment: Some tyre shops have reported a surge in customers aiming to beat potential price hikes due to tariff concerns. (Yahoo)
• Changing preference: Discussions among Australian consumers indicate a current preference for mid-range tyres, balancing cost and performance, however some Australian tyre retailers are seeing a rise in the percentage of budget tyres sold due to the rising cost of living.

With Tyres, Waiting is Never a Good Idea

Even prior to the announcement of the 2025 U.S tariffs, Australian tyre buyers were avoiding paying more for their tyres by turning to mid-range and budget options, and this will remain a valid strategy moving forward. However, investing in quality tyres is always  recommended, considering they are the only thing connecting your car to the road. (Reddit) So if your tyres are nearing the end of their life, it might be wise to consider replacing them sooner rather than later. Waiting too long could see you paying more as tariffs and production costs continue to rise. (Reddit)

Indicators to Watch That will Further Influence Tyre Prices in 2025

Not ready for tyres yet? If you’re trying to time your purchase, here are key indicators to keep an eye on:

• Global Raw Material Prices: Rubber, steel, and synthetic compound costs directly impact tyre prices.
• Shipping Costs: If freight prices increase, so will the cost of imported tyres.
• Government Trade Policies: Any new tariffs or trade restrictions could shake up the market.
• Economic Inflation: Rising inflation rates typically lead to increased manufacturing costs.

Final Thoughts

While U.S. tariffs won’t directly target Australian tyre imports, the interconnected nature of global trade means we could feel the ripple effects.  But the reality is that if your tyres are nearing the end of their life, it’s the right time to replace them regardless of what the market is doing. If they’re not nearing the end of their life (here’s a handy way to check), keep driving on them and get your money’s-worth from all four of your tyres. With a simple rotation you may be able to get even more mileage than you imagined, too.

At Mobile Tyre Shop, we’re dedicated to helping you save money and time when It comes to tyres. But we never want you to sacrifice safety for savings,

Remember, in the world of tyres, as in life, it’s better to be safe than sorry.