301

Recently, the U.S. Trade Representative Office issued a new Section 301 tariff announcement, categorizing 60 countries and regions into different tax brackets. This tariff package is not only levied in addition to the old Section 301 tariffs, but tire products are prominently included with no room for exemption. This policy adjustment marks a reconstruction of global trade rules and also forces China's tire industry, which relies heavily on external markets, to face a fundamental shift in its export environment.

Export Paths Blocked: Direct Export and Southeast Asia Transit Double-Pronged Restrictions

China's tire direct export and transshipment trade space is facing severe squeezing. On July 15, the U.S. Department of Commerce concluded the sunset review of Chinese passenger car and light truck tires, pushing the combined tax rate to a historical high of 190%, basically blocking the direct export path to North America. Meanwhile, the EU previously announced anti-dumping duties of 24.4%-45.3% on relevant Chinese tires, weakening the price competitiveness of Chinese products in Europe.

More severe is the synergy of U.S. and EU tariff policies. In the U.S. new Section 301 tariff list, Southeast Asian countries such as Vietnam and Thailand are in the same 12.5% tax bracket as China, which echoes the EU's recent anti-circumvention investigations initiated against Southeast Asia. When Chinese enterprises attempt to avoid tariffs by transiting through Southeast Asian capacity, the U.S. and Europe have set up an "Origin Trap." Combined with anti-dumping investigations by Brazil and Peru and environmental barriers of the Eurasian Economic Union, trade barriers globally targeting Chinese tires are continuously rising.

Profit Model Under Pressure: "False Globalization" Faces Compliance Challenges

As the world's largest tire producer, 80% of domestic capacity is concentrated in low-end products, and the long-term "trading price for volume" model has become a key focus of anti-dumping investigations by various countries. Data shows that in 2025, China's tire export volume was huge, but profit accounted for only 8%. In the face of tariff barriers exceeding 100%, this meager profit space is instantly squeezed away.

Under tariff pressure, domestic tire companies have sparked a boom in overseas factory construction. In the first half of 2026, more than a dozen projects announcing overseas expansion were declared, with total investment exceeding 20 billion yuan. However, simple capacity transfer is facing compliance challenges. A certain enterprise's Southeast Asia factory faced suspension due to EU anti-circumvention investigations immediately after production start; another enterprise was still levied high tariffs due to not meeting U.S. "content of origin" standards. Compared to the full-chain localization models of foreign giants like Michelin and Bridgestone, "False Globalization" staying at the "assembly workshop" stage with supply chains still bound to China appears weak in the face of tariff barriers.

Industry Accelerates Transformation: Deep Localization Becomes Consensus for Breaking the Deadlock

When low-price advantages are limited, China's tire industry is forced to face the reconstruction of the industry's underlying logic. Linglong Tire, in its Serbia factory, explored a "R&D + Production + Supply" three-in-one deep localization model by achieving European local procurement, forming an R&D team targeting EU regulations, and entering the OEM market. At the same time, Zhongce Rubber, Double Coin Tire, etc., are doubling down on local supply chains, and Sailun Group introduced Industry 4.0 standards at its Cambodia factory.

The tightening of new Section 301 tariffs and global trade barriers objectively accelerates industry reshuffling and transformation. When Southeast Asia transit paths are blocked and low-price models are unsustainable, this industry adjustment triggered by tariffs is pushing Chinese tires to move from "Global Factory" to "Global Brand". Future market competition will gradually shift from capacity scale contests to a comprehensive battle of technological innovation, brand value, and global operational capabilities.