Goodyear raises estimate for business impact of tariffs

Akron, Ohio – Goodyear has raised its estimate for the annualised cost-impact of trade tariffs to an estimated $350 million (€300 million) – up from an earlier projection of $300 million.

The increase reflects higher US tariffs on Brazil-sourced retread products and truck tires from Goodyear’s Vietnam JV, said Christina Zamarro, EVP and finance chief, during second-quarter earnings call.

Goodyear is “planning sourcing changes to reduce tariff cost exposure,” and working on “supply-chain adjustments, sourcing shifts and cost savings actions” to limit the impact, Zamarro told analysts 8 Aug.

In Europe, however, the Akron tire maker could gain from the EU’s ongoing investigation into Chinese passenger tire imports, which began in late May, Zamarro pointed out.

According to the Goodyear finance chief, provisional tariffs could apply rates of between 41% and 104% on Chinese tire imports into Europe.

The investigation, she noted, should be complete by the end of the first quarter next year, while the EU started to register Chinese tire imports in late July for potential retroactive tariffs.

The move has resulted in a surge in imports from China ahead of the decision, adding short-term pressure to the local market, continued the finance chief.