by EU imposes duties on Chinese tires: up to 45.3% of value
The European Union, which previously introduced large-scale duties on electric vehicles from China to protect its own automotive industry, has now extended its trade policy to the tire sector. Chinese tire manufacturers are facing new high taxes.
Rising popularity of Chinese tires
Chinese tires, like cars, have gained significant popularity in Europe. From 2021 to 2024, their share of the European market grew from 18% to 28%. In 2024, approximately 93 million such tires were imported into the bloc. According to the European Commission, around 336 million tires for passenger cars and light commercial vans were used in the EU that same year. Brussels is resorting to tariffs to protect local companies such as Michelin, Pirelli, and Continental.
Details of the new duties
Under the so-called anti-dumping duties, manufacturers such as Shandong Yongsheng and other Chinese companies that did not receive an individual rate will be subject to a 45.3% tax. As with the duties on Chinese electric vehicles, companies that the EU considers to have cooperated with the investigation will receive a reduced rate of 24.4%.
How will the duties affect prices?
According to an Automobilwoche report, the duties apply to the import value of each tire, not its retail price. In 2024, the average import value of a Chinese tire was 30.30 euros ($34.60). Thus, a 45.3% duty adds about 13.70 euros ($15.60) to this amount, while a 24.4% rate adds approximately 7.40 euros ($8.40). Including VAT, the additional cost will range from 9 euros ($10) to 16 euros ($18) per tire before retailers apply their own markup. The budget segment will be hit the hardest.
Reasons for the investigation
Brussels launched an investigation into Chinese tire companies in May 2025 following a complaint from the Coalition Against Unfair Tire Imports, an association of European manufacturers. The group alleged dumping margins ranging from 41% to 104% and claimed that Chinese manufacturers were undercutting prices by 30-65%.
Exception for Hankook
Korean brand Hankook, which has factories in China, received a reduced rate of 4.3%. Investigators found that while its Chinese plants were engaged in dumping, this practice caused minor harm to the European industry. The Commission also noted that Hankook tires typically belong to the upper-middle segment and are sold at significantly higher average prices than most Chinese competitors.
Reaction and arguments of the parties
The report adds that China and European importers rejected the allegations, warning that the duties could lead to price increases and cause shortages in the cheaper tire segment. The Commission dismissed these arguments, stating that European manufacturers lost production volumes, sales, and market share despite market growth.
This move by the EU is further evidence of escalating trade tensions between the bloc and China. Although the main goal is to protect European manufacturers such as Michelin and Continental, the consequences may be mixed. Consumers, especially those choosing budget tires, may face a noticeable increase in prices. At the same time, this could stimulate European companies to increase production in the lower price segment, but whether they can quickly fill the gap remains a question. The situation also shows that trade disputes between the EU and China extend far beyond the automotive industry, covering related sectors such as tire manufacturing.
