Tire imports rebound to pre-COVID levels

WASHINGTON—2021 was a boom year for imports.

After a slight dip in trade volume and revenue in 2020, both roared back in 2021 as demand for tires in the U.S. rebounded to pre-COVID levels and more.

By the numbers, the value of tire imports last year shot up 18.4 percent to a record $15.9 billion on double-digit unit shipment growth in most categories.

Thailand, the No. 1 source of imported passenger, light truck and medium truck/bus tires, tops the overall list of importing nations with shipments valued at $3 billion, an 8 percent increase despite a 7.3 percent drop in passenger tire shipments in the wake of elevated import duties imposed on Thailand in 2021.

As they pertain to companies in Thailand, the duties on passenger and light truck tires are: LLIT Thailand Co. Ltd. (Linglong) — 22.21 percent; Sumitomo Rubber (Thailand) Co. Ltd. — 13.25 percent; all others — 16.66 percent.

Mexico was the big mover of the year. The value of tire imports from the U.S.'s southern neighbor shot up 48.2 percent to $1.57 billion on the strength of high double-digit (52.8 percent and 55.9 percent) growth in passenger and light truck tire shipments.

Mexico now ranks third in import value, nearly equal with Canada, the perennial No. 2.

With the exception of products from JK Tyre's Mexico operations, all the tires coming from Mexico are from affiliates of Bridgestone Americas, Continental Tire the Americas, Goodyear (including Cooper Tire), Michelin Group and Pirelli Tyre.

The growth of Mexico's exports to the U.S. reversed the balance of trade between the countries to favor Mexico by $255 million, a swing of nearly $400 million.

With that swing, the U.S. maintains a trade surplus with only one its major tire sector trading partner nations—Canada—and that surplus shrank last year to just $39 million. Of course all of the trade with Canada involves principally three companies—Bridgestone Americas, Goodyear and Michelin North America — which have factories in both nations.

Canada and Mexico represent 65 percent of the U.S. tire industry's exports by value, the data show.

The largest surplus the U.S. has overall is with Australia, at $328.4 million.

Overall, the U.S.'s trade deficit in tires deepened by nearly 21 percent last year to $11.3 billion, based on the 18.4 percent growth in imports (to $15.9 billion) and 12.8 percent growth in exports (to $4.63 billion).

China, the U.S.'s No. 1 trading partner as recently as 2019, was No. 4 last year with imports valued at $1.21 billion—up 23.5 percent over 2021—with the bulk of that derived from exports of heavy truck, OTR and other industrial-type tires to the U.S. in light of elevated import duties in place on passenger, light truck and medium truck tires.

The value of imports from Taiwan—whose tire makers were hit the hardest by the U.S.'s imposition of elevated import duties early in 2021—fell 38 percent to $355 million. Shipments of passenger and light trucks from Taiwan dropped 56.5 percent and 59.4 percent last year versus 2020.

From a units perspective:

• Passenger tire imports rose 10.4 percent (14.7 million units) to 155.9 million units;
• Light truck tire imports grew 19.8 percent (5.53 million units) to 33.4 million units; and
• Medium truck/bus tire imports shot up 31.8 percent (4.18 million units) to 17.3 million units.

As such, imports represented 69 percent, 87 percent and 76 percent of U.S. passenger, light truck and medium/heavy truck tire shipments, respectively, last year, according to Tire Business' analysis of the USTMA and Commerce Department data.

Roughly two-thirds of passenger tire imports, however, are estimated to be tire brands affiliated with companies that have captive manufacturing in the U.S., so the "true" passenger tire import share would be closer to 23 percent.

Thailand continues to be the No. 1 source of imported tires for the U.S., being ranked first in the three main categories by comfortable margins over the No. 2 exporting nations despite reduced shipments last year versus 2020, the Commerce Department data show.

Mexico was the rising star among trading nations, registering 52.8 percent and 55.9 percent gains in exports to the U.S in passenger and light truck tires, respectively.

Taiwan—whose tire makers were hit the hardest by the U.S.'s imposition of elevated import duties early in 2021 — was the most notable at the other end of the spectrum, shipping 56.5 percent fewer passenger and 59.4 percent fewer light truck tires to the U.S. last year versus 2020.