Tire Dealers NAICS 441340

Jan 16, 2026 - Tire Industry Looks to Last-Mile Delivery for Growth

• Last-mile delivery tires are emerging as a strong growth opportunity for tire dealers and wholesalers as e-commerce continues to expand. Demand is increasing for tires engineered to handle frequent stops, curb impacts, heavy payloads and constant urban use. North American last-mile delivery tire demand is projected to exceed $450 million in 2025 and continue growing through the end of the decade. Dealers that can guide fleets on cost-per-mile performance, durability and uptime - rather than just price - are well positioned to win business. The shift toward electric delivery vans is also driving interest in EV-specific tires with higher load ratings and low rolling resistance. For wholesalers, the segment opens opportunities beyond national accounts, particularly among regional couriers, local delivery fleets and owner-operators. Overall, last-mile delivery represents a resilient, service-driven market with long-term profit potential for the tire channel.
• The US tire wholesale and retail industry is facing growing challenges from tariffs and import costs, prompting distributors to adopt strategic measures to protect margins and maintain supply. Companies like Gallagher Tire are increasing Q4 and Q1 purchases to hedge against price spikes, while carefully monitoring pricing and collaborating with suppliers. Tire Group International maintains steady imports, relying on experience with previous anti-dumping duties to avoid supply gaps. Distributors such as Moore’s Tire Sales and USA Wheel & Tire report overseas cost increases of 5-12%, which they are selectively passing to retail customers. Many are also leveraging national rebates and building inventory in anticipation of future tariff adjustments, aiming to balance cost pressures with customer retention. These efforts reflect a broader trend in the tire industry: distributors are becoming increasingly proactive and flexible to navigate an uncertain trade environment and keep both wholesale and retail operations resilient.

• Tariffs under the Trump administration have reshaped the tire retail and wholesale industries, forcing companies to adapt quickly to higher costs and unpredictable trade conditions. Global manufacturers like Pirelli and Goodyear report multimillion dollar hits, with Goodyear citing weaker truck tire demand and declining sales. Retailers and wholesalers now face tighter margins as suppliers adjust pricing models to account for fluctuating tariffs, creating uncertainty in long-term planning. Some firms, such as Hankook, are expanding US manufacturing to reduce tariff exposure, a move that could stabilize supply for domestic distributors and retailers. Smaller businesses, however, struggle to absorb steep increases (such as a 50% tariff on Brazilian rubber) without passing costs to consumers. Trade groups note that many companies are treating tariffs as a “new normal” and building them into business strategies.
• American Tire Distributors (ATD), one of the largest wholesale distributors of tires in the US, is finding little relief after reorganizing and emerging from bankruptcy late last year. The tire and wheel aftermarket industry has struggled mightily in the past year - low demand as consumers look for cheaper tires, supply chain disruptions brought on by a US trade war, and increased labor and product costs. Retailers like Advanced Auto Parts are closing hundreds of stores, while distributors like ATD filed for bankruptcy, and still others closed shop altogether. ATD customers continue to drop the distributor, even after it emerged from Chapter 11, spurred by an ill-advised operational expansion after the tire market boomed post-Covid in 2021. ATD had already lost Goodyear in 2018, and now Michelin North America followed suit, pulling popular tire brands such as Michelin, BFGoodrich, and Uniroyal from ATD’s network.