2026 MTD Facts Issue
Industry snapshot MTD LOOKS AT THE TIRE MARKET AS 2026 BEGINS
2025
22
2601MTD_22-23_FACTS_SalesShipments.indd 22
AROUND THE CORNER Will tariffs stick? That largely depends on the U.S. Supreme Court, which was expected to rule on the legality of the Trump tariffs this past November, but has not issued its verdict yet. Other factors that may inf luence consumer sentiment, the general economy and demand for tires include the possible economic impact of military actions in both the Western Hemisphere and overseas; the price of crude oil, which declined during 2025, according to the U.S. Energy Information Administration; and the overall cost of goods, which remains elevated. (The Consumer Price Index has climbed nearly 3% over the last 12 months, according to a recent report from the U.S. Bureau of Labor Statistics.) A rebound in miles driven would certainly benefit tire manufacturers, distributors and dealers. Pent-up demand for tire replacement and auto service could also break loose in 2026 as the average age of personal vehicles is expected to remain at an all-time high. At the retail level, expect more consolidation as private equity firms continue to roll up small- to mid-size tire dealerships. Further changes are expected in the wholesale channel as American Tire Distributors finds its new equilibrium and other independent distributors seek to grow their share. Here’s a look at how some of the world’s largest tire manufacturers fared during 2025, in terms of tire sales:
All estimates in this section are the result of MTD research, unless otherwise noted.
Image: 1313483427 | KrulUA | Getty Images
was shaping up to be a relatively normal — perhaps even predictable — year until April 2, when United States President Donald Trump applied tariffs to nearly 100 countries, firing the first salvo in a global trade war. The development wasn’t entirely unexpected as Trump had campaigned on implementing tariffs during the run-up to the November 2024 presidential election, but the announcement nevertheless sent shockwaves throughout the economy and created a new degree of uncertainty within the U.S. tire market. After tariffs were announced, tire manufacturers, distributors and dealers worked to shore up their supply chains and implemented other strategies to insulate their bottom lines, with some ordering ahead and stocking up to keep their shelves full. Meanwhile, many vehicle owners, already reeling from the elevated cost of goods, continued to defer needed tire replacement and auto service. Those consumers who could no longer defer new tire purchases continued to trade down to less-expensive brands, a trend that has consistently gained momentum since COVID-19. As a result, many consumer tire distributors and dealers found new profit opportunities selling tier-three and tier-four products. Uncertainty also impacted the trucking and agricultural sectors in 2025 as new truck orders and ag equipment sales plummeted. Many budget-conscious trucking fleets gravitated toward less-expensive replacement tires to keep their power units and trailers rolling, while demand for retreaded tires remained steady — creating openings for enterprising commercial tire dealers who could meet this demand. Tire manufacturers continued to rationalize North American production facilities in response to changing market conditions, a process that happens every year. Two tiremakers closed plants, others moved ahead with planned upgrades and production shifts and one manufacturer began building tires at a new factory in Mexico.
MTD January 2026
1/13/26 11:29 AM