Treading through uncertainty: Tire dealers share strategies to overcome tariffs and down economy
Tariffs and the freight recession are the two biggest topics on the minds of commercial tire suppliers right now, according to some of the top executives in that industry interviewed by Modern Tire Dealer, a Fleet Maintenance affiliate.
The thing that jumps out is how recent events are apparently changing fleet behavior. A 2024 snapshot survey Fleet Maintenance conducted found three out of five respondents chose durability or performance as the most important factor in selecting tires, versus only 7% picking initial cost.
But that might not be true anymore, as recent factors have stretched fleets’ budgets thin. General price increases from tire manufacturers, pass-on costs from tariffs, and the sluggish freight economy have all impacted what replacement tires they are choosing, noted representatives from tire dealers named to the MTD Top 100, a list of leading tire suppliers.
Here's what they said:
Economic factors
“Trucking is down and we see that in every quarterly update from fleets,” offered Southern Tire Mart executive Thomas Fanning. “Interest rates are affecting construction and overall consumer confidence is weak.
“The pricing and related volatility is creating a flight to value and fleet orders are on an as-needed basis,” the former head of Continental’s truck tire division continued. “Everyone is tightening their belts, so the environment is challenging.”
Joe Zaccheo, CEO and president of Sullivan Tire Co., said there is “mild replacement demand” in the U.S. tire market right now, as more consumers opt to replace and maintain versus buying new vehicles.
Tim Winkeler, CEO of VIP Tires & Service, observed that customers delayed scheduled maintenance and tire maintenance “more often this spring than we’ve seen in a long time.”
This is due to them being “stretched financially further than they have been in the last several years” while consumer debt grows. This not only affects new vehicle sales, but does not bode well for the economy overall, as more people use their earnings to pay down interest versus buying new things (which are virtually all moved by trucks).
For these reasons, replacement tire shopping is also done with more scrutiny.
“While consumers seek quality products at a reasonable price, we’re also seeing a continuation of a trend that started last year, where many are opting to purchase perceived value and performance at a reduced cost, i.e. flight-to-price,” Zaccheo said. “This indicates a market where reliability and brand trust are in conflict with value perception.”
And that’s driving more customers to value brands, asserted Parham Parastaran, CEO of Left Lane Auto.
“The most significant thing happening now and something that will continue to happen is the shift to tier-three and tier-four tires,” Parastaran said. “This shift, coupled with too much competition, makes it very difficult to differentiate as a tire shop.”
Tariffs
The biggest buzzword on tire dealers’ minds, though, is “tariffs,” Parastaran, along with the uncertainty they bring.
Tire dealers don’t know what to expect month to month, as tariff rates on tires from leading exporters have fluctuated wildly since President Donald Trump took office.
Thailand, the top tire exporter to the U.S., was hit with a 36% tariff in April. That was almost immediately paused and replaced with a 10% flat tariff. This was to provide a three-month renovation window. That has passed, but the next big deadline is coming up Aug. 1. Reuters reported that the Thai Finance Minister Pichai Chunhavajira expects the renegotiated tariffs to be commensurate with Vietnam and Indonesia, or around 20%, and not 36%.
But who knows when the “Art of the Deal” is in play?
One thing dealers do know is that tariffs could drastically affect pricing and what brands customers pick when looking for fresh treads.
“There is a lot of uncertainty in consumer behavior, with interest rates remaining high and tire costs increasing to keep up with it,” said Jamie Ward, CEO of Tire Discounters Inc. “I’m concerned that retailers will reduce pricing unnecessarily in reaction to low demand. That will cause a ripple effect that will reduce or compress gross margin and destroy retailers’ profits.”
Higher overall vehicle costs due to tariffs are likely to “suppress new vehicle sales,” Winkeler said, “which in turn means that many consumers will put off buying a new car and they will keep their current car longer.”
This means they will spend more on maintenance and repairs. Winkeler predicted if this continues, it “would be a tailwind for our business, both on the tires side, as well as the mechanical service side.”
But he added, “tariffs are also likely to cause inflation for the parts and tires that we purchase, which will translate into higher prices to our customers.”
Winkeler was speaking broadly about the consumer side, but this should bear true on the lighter side of the commercial sector at the very least.
Chris Ripani, COO of Sun Auto Tire & Service, agreed more customers are focusing on preventative maintenance to improve vehicle total cost of ownership, and is “seeing sustained strength in the fleet and light commercial segments, where reliability and uptime matter most.”
Tire shops’ response
Due to people having less to spend and tires and other parts costing more, tire shops are looking for ways to stay lean as well.
“Customers today are more price-conscious,” Ripani noted. “On the operational side, inflation has added complexity, but we’ve stayed disciplined on pricing and cost control.”
Tire Discounters’ Ward also preached that to “weather the storm,” fellow dealers remain “disciplined in any price reductions.”
Fanning agreed the service side is where tire shops have the opportunity to make up costs.
Don Barnes III, at Belle Tire Distributors, believes this is just a return to the mean.
“I think we all were spoiled by what happened in 2020, 2021 and 2022,” Belle’s chief tire guy offered. “We loved having 10%, 15% and 20% growth, year-over-year. We’re getting back to legacy, historical trends.”
He, like Fanning, concluded these challenges also present opportunities for tire shops and dealers to improve their overall business.
General advice we would offer includes:
- Deploying management software to track shop KPIs such as throughput and technician efficiency and productivity
- Investing in proper tools and equipment to expand or improve offerings like alignments
- Training technicians and service writers to identify other vehicle issues and make compelling upsell pitches that focus on “fix now” benefits versus deferring service
About the Author

John Hitch
Editor-in-chief, Fleet Maintenance
John Hitch is the award-winning editor-in-chief of Fleet Maintenance, where his mission is to provide maintenance leaders and technicians with the the latest information on tools, strategies, and best practices to keep their fleets' commercial vehicles moving.
He is based out of Cleveland, Ohio, and has worked in the B2B journalism space for more than a decade. Hitch was previously senior editor for FleetOwner and before that was technology editor for IndustryWeek and and managing editor of New Equipment Digest.
Hitch graduated from Kent State University and was editor of the student magazine The Burr in 2009.
The former sonar technician served honorably aboard the fast-attack submarine USS Oklahoma City (SSN-723), where he participated in counter-drug ops, an under-ice expedition, and other missions he's not allowed to talk about for several more decades.