According to relevant reports, Goodyear Tire and Rubber Co. has become a stock market darling as analysts and investors eye it as a potential tariff winner.
In response to the punitive 25% tariff on goods that do not comply with the USMCA, most tire suppliers are troubled by huge costs and strategic facility relocation, but Goodyear is in a good position.
Only 12% of Goodyear's U.S. tire supply comes from outside the USMCA, and its Canadian and Mexican plants are fully compliant with the regulations.
Goodyear estimates that the total impact of the tariffs will be $300 million, while competitors could face losses three to four times that amount.
Earlier, from March 2024 to March 2025, the import value of automobile tires and inner tubes in the United States increased by $102 million. Facing foreign imported products, Goodyear's business has always been relatively fragile.
On June 3, Goodyear celebrated its 100th birthday, and the company has completed more than half of its two-year transformation plan, which will end in December. All three sales plans announced by Goodyear have been realized. Among them, the OTR tire business was sold to Yokohama Rubber, certain Dunlop brand rights were sold to Sumitomo Rubber, and on May 22, it was announced that most of the chemical business would be sold for US$650 million.
Goodyear is currently converting its 10 million annual passenger car tire production capacity at its Lawton, Oklahoma plant to high-end tires in an effort to gain a competitive advantage in the U.S. market.
As Trump's new tariffs were introduced, Goodyear's stock price has risen 31% since the beginning of 2025, highlighting the impact of tariffs. The company, which realized the need for transformation in 2023, has now become one of the hot stock.
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