Rubber Product Manufacturers NAICS 3262

Jul 30, 2025 - Tariffs Impacting Rubber and Tires

• The recent wave of tariffs imposed by the Trump administration is set to significantly impact the rubber and tire industry in the US, Rubber World reports. Analysts predict that tire prices will rise substantially due to tariffs, which target key exporting countries such as Thailand, Indonesia, Vietnam, and South Korea, according to Rubber World. A record 63.4% of tires sold in the US IN 2024 were imported, with tariffs ranging from 26% to 46% on tires from these countries. Under a new trade agreement between the US and Indonesia (the US’s 23rd top trading partner) reached in July, Indonesian exports to the US, including rubber, will not face tariffs exceeding 19% through 2029, a significant reduction from the 32% Trump briefly imposed on the country in April, CNN reports. Also in July, Trump threatened to impose a 25% tariff on South Korea from August 1.
• While many businesses are struggling to respond to President Trump’s tariff turmoil, higher trade barriers are creating opportunities for some US manufacturers, The Wall Street Journal reports. One such beneficiary, Grand River Rubber & Plastics, is seeing an increase in new orders and inquiries from customers looking to avoid import tariffs, per WSJ. The Ohio company’s President Donny Chaplin says two previous customers that had switched to Chinese suppliers a few years ago recently came back wanting to buy rubber gaskets from Grand River again. Together with three makers of oil filters, the new business will be worth about $5 million a year if completed, or roughly 10% of Grand River’s revenue, requiring the company to hire and expand production lines, Chaplin told WSJ. However, 10% baseline tariffs and higher duties on goods from China are increasing Grand River’s costs for supplies including machine tools and rubber.

• Tariffs on imports from Canada and Mexico harm the US auto industry and directly impact tire prices, supply chains, and manufacturers, according to an analysis by Discounted Wheel Warehouse. Mexico and Canada – prime targets of President Trump’s trade war – were two of the largest exporters of passenger and consumer tires to the US last year. Mexico exported 22.9 million passenger tires to the US in 2024, while Canada’s exports to the US totaled 10.2 million passenger tires over the same period, according to Modern Tire Dealer’s 2025 Facts Issue. Combined, exports from the two countries make up nearly 12% of the nation’s total replacement and original equipment tire market. While Trump’s protectionist policies could provide a boost to domestic tire manufacturers, tariffs would increase the cost of imported rubber, which the tire industry and rubber products makers depend on, leading to higher prices for consumers.
• Producer prices for rubber products manufacturers rose 1.1% in June compared to a year ago, after posting a flat previous June-versus-June annual comparison, according to the latest US Bureau of Labor Statistics data. After rising steeply in 2021 and 2022, prices for producers of rubber products have largely plateaued as sales declined from their peak in Q3 2022. Employment by the industry shrank 3.2% year over year in May, while the average industry wage at plastics and rubber products manufacturers rose 3.6% YoY in June to a new high of $25.35 per hour, BLS data show.