Tire Industry Chain Information and Export Trade Policies
Article Preface
The tire industry is currently facing dual challenges: internal cost increases and industry polarization, coupled with rising external trade barriers. Tight supply of upstream raw materials is driving price hikes, midstream enterprises are under pressure and experiencing differentiation, while trade policies in key markets like the EU and the US continue to tighten. This article aims to outline dynamics across the industrial chain and new export regulations, providing a clear reference for navigating these changes.
01 Tire Industry Chain Information / 2025
Upstream: Natural rubber supply is significantly impacted by extreme weather. Southeast Asia supplies 70% of the world's natural rubber. Since August 2025, core rubber-producing areas in Southeast Asia and China's Yunnan and Hainan provinces have simultaneously experienced rainy seasons and extreme heat, leading to a sharp decrease in high-quality rubber sources. As of September 3rd, the price of natural rubber rose to 15,885 RMB/ton, up nearly 1,400 RMB from the recent low. The butyl reclaimed rubber chain is fractured. Influenced by the popularization of radial tire technology and strengthened enforcement against overloading in China, the recycling volume of waste butyl inner tubes has decreased significantly. Concurrently, tighter environmental policies are suppressing reclaimed rubber production capacity. The production cost of butyl inner tubes has increased, with a cumulative price rise of 15%-20% within the year, and some models are in critically short supply.
Midstream: Leading enterprises, represented by Zhongce Rubber, have increased prices for all-steel tires by 2% and for inner tube products by 4%. Top companies like Qingdao Doublestar's 4.0 factory are using intelligent means to enhance product quality and production efficiency. However, small and medium-sized enterprises, due to funding and technological shortcomings, struggle to afford environmental upgrades and intelligent transformation costs. Their capacity utilization rates are below 60%, facing significant survival pressure.
Downstream: The tire market has a large demand base, but consumer decision-making shows a divergence between "essential stockpiling" and "cautious wait-and-see." Dealers are widely adjusting inventory strategies, reducing large-scale stockpiling and adopting a "small batch, high-frequency replenishment" model. The shift online is accelerating. Platforms like JD Car Maintenance and Tuhu occupy 60% of the replacement market share, with TikTok live-stream sales accounting for 18%.
02 Export Trade Policies / 2025
European Union: Starting September 1, 2025, the third phase of the EU's Import Control System 2 (ICS2) officially takes effect, expanding its scope to all modes of transport. Violators face fines of up to 2 million Rubles per day, product removal, and permanent account suspension. Additionally, on May 20th, the EU formally initiated anti-dumping and countervailing investigations into passenger car and light truck tires from China.
United States: Effective August 7th, the US imposed a 15% tariff on Japanese automobiles and parts, including tires, while maintaining 50% tariffs on steel and aluminum. The US has also strengthened origin reviews for re-export trade, cracking down on "false origin" practices.
Southeast Asian Nations: Starting September 2025, Southeast Asian countries are strengthening the enforcement of rules of origin, strictly investigating "false origin" for Chinese goods, and imposing a 40% punitive tariff on re-exported goods that have not undergone "substantial transformation."
Mexico: Since August 15, 2025, Mexico has levied a 33.5% import tax on goods valued under $2,500, primarily targeting countries without a free trade agreement with Mexico, especially Chinese goods.
