Budget Chinese Tires Are About To Get More Expensive In Europe

The European Union first imposed sweeping tariffs on EVs from China to shield its local car industry. Soon, plug-in hybrids could be hit too. And it turns out Chinese automakers aren’t the only target, because tire companies are now facing steep duties of their own.

Chinese tires have surged in popularity, much like their cars. Between 2021 and 2024, the European market share held by Chinese tires climbed from 18 percent to 28 percent, with roughly 93 million of them imported into the bloc in 2024. According to the European Commission, around 336 million passenger car and light commercial vehicle tires were used across the EU that year. Tariffs are Brussels’ answer as it moves to protect homegrown firms such as Michelin, Pirelli, and Continental.

Read: China’s Answer To Europe’s EV Tariffs Came With A Gas Tank

Under so-called anti-dumping duties, producers such as Shandong Yongsheng and other Chinese manufacturers that didn’t receive an individual rate will be subject to a 45.3 percent levy. As with the bloc’s levies on Chinese EVs, companies deemed to have cooperated with the EU investigation will be subject to a reduced 24.4 percent tariff.

According to a report from Automobilwoche, the duties apply to the import value of each tire rather than its retail price. In 2024, the average import value of a Chinese tire was €30.30 ($34.60). A 45.3 percent tariff therefore adds about €13.70 ($15.60) to that figure, while the 24.4 percent rate tacks on roughly €7.40 ($8.40). With VAT (sales tax) included, the extra cost lands somewhere between €9 ($10) and €16 ($18) per tire before retailers apply their own margins, and the budget segment stands to feel it most.

How Did We Get Here?

Brussels opened its investigation into Chinese tire companies in May 2025 after a complaint from the Coalition Against Unfair Tyre Imports, an association of European manufacturers. The group alleged dumping margins of between 41 and 104 percent and said Chinese producers were undercutting prices by 30 to 65 percent.

Korean brand Hankook, which runs plants in China, drew a reduced rate of 4.3 percent. Investigators found that while its Chinese factories were dumping, the practice did little harm to European industry. The Commission also noted that Hankook’s tires generally sat in the upper-middle segment and sold at far higher average prices than those of most rival Chinese suppliers.

The report adds that China and European importers rejected the allegations, warning the duties could push prices up and trigger shortages in the lower-priced tire segment. The Commission dismissed those arguments, saying European manufacturers had lost production volume, sales, and market share despite a growing market.