Tire distributors share tariff struggles

Throughout 2025, one theme in the transportation industry has been ‘uncertainty,’ both regulatory and economic. But even as elements of economic policy have become clearer throughout the year, the results haven’t always been good for trucking.

For instance, at the end of August, steel and aluminum used in trailers were included with the 50% tariff after the U.S. Department of Commerce added over 400 product categories to “derivative” items covered by Section 232 sectoral tariffs. Meanwhile, large supplier countries for the transportation industry, such as Canada, Mexico, and India, are carrying tariffs of 35%, 25%, and 50%, respectively.

As for how these various economic policies have impacted trucking, one place to look is at tire distributors, as covered by Fleet Maintenance’s sister publication Modern Tire Dealer. The publication checked in with four tire dealers, including Gallagher Tire, based in Pottstown, Pennsylvania; Tire Group International, based in Miami, Florida; USA Wheel and Tire, of Dallas, Texas; and Moore’s Tire Sales of Owego, New York.

Preparing for tariffs

Several of these tire distributors were already prepared for the impact of tariffs.

“As soon as Trump became president, we saw the writing on the wall,” said Haris Nadeem, CEO of USA Wheel and Tire. “We weren’t surprised when the announcement came.”

And according to Nadeem, the company was even prepared for tariffs before they first began in April, when they stocked up on units, sometimes even doubling their orders.

“We didn't slow down,” Nadeem emphasized. “Our strategy was, ‘Let's buy as much as we can right now.’”

Similarly, Joaquin Gonzalez, president of Tire Group International, noted that his company has “already churned through our [tariff] strategy.” Reportedly, the company has been importing tires, and handling tariffs and anti-dumping duties, since the Obama administration.

But to handle the Trump Administration’s tariffs, Gonzalez said they tried to implement a measured response.

“The worst thing that can happen is you get that fear and that shock and you say, ‘I’m just going to hold off on ordering’” Gonzalez said. “Well, the reality is if you’re truly in the business and you're without tires, your customers are going to have to go to your competitors. You're pretty much inviting your competitor to earn that business.”

Looking at the market

While many of these organizations were able to prepare, the tariffs have certainly stung.

For instance, Bill Watkins, president and owner of Moore’s Tire Sales, based in Owego, New York, found himself with an added expense of over $4,000 when he bought a shipment of tire studs from Canada. To avoid future costs, Watkins had to cut back on studs.

“Usually, I buy somewhere around two million studs a year,” he said. “This year, I didn’t buy that many because we had some left over. I bought about 80,000 this year.”

And studs aren’t the only items with spiking prices. Nadeem said he’d seen some suppliers raise their prices by 5-12%, while Gallagher noted that the tariff on India hit them particularly hard, since they carry a lot of tires form the country. Watkins had a similar experience with the tires they stock form Indonesia (19% tariff), Thailand (19%), South Korea (15%), Vietnam (20%), and Cambodia (19%).

All three noted that they’d had little choice but to pass the cost increases on to their customers, but that many had been understanding.

“For the most part, I think everybody understands,” Gallagher said. “It’s hard to not watch the news and not know what’s going on. Our core customers have been receptive to modest increases.”

Looking ahead

But despite this, most of the distributors were ready to keep pushing forward, despite the adversity caused by tariffs.

“When tariffs happen, people say, ‘What are we going to do now?’” Gonzalez asked. “We continue to buy because eventually we’ll cost-average ourselves up with the new cost.” This tactic can lead to Tire Group International outlasting other competitors, and according to Gonzalez, it’s been a successful approach over the past several months, with the company receiving some “really good months out of our distribution centers.”

As well as this, Nadeem emphasized the importance of loyalty during tough times.

“It just comes down to knowing your market,” he concluded. “The beautiful part of it is when you’ve built a certain level of loyalty with your customers, you can depend on them.”