Toyo Tire Corporation will invest ¥30 billion ($200 million) in its Georgia manufacturing facility through 2030, according to Nikkei, as the Japanese company scrambles to avoid the impact of President Donald Trump’s escalating trade war on tires.
The investment reflects the harsh reality facing foreign tire manufacturers. The U.S. is a key market that generates close to 70% of Toyo Tire’s revenue, yet Trump’s reciprocal tariffs threaten to make imports prohibitively expensive. The administration has imposed 25% tariffs on passenger and light truck tires, forcing companies to reconsider their supply chains.
Currently, about half of the tires are exported from Japan and Serbia, but this model has become untenable under the new trade regime. The Georgia expansion will increase overall U.S. tire production capacity by approximately 5%, with a 10% boost specifically for SUVs and larger vehicles.
Toyo’s predicament illustrates the broader disruption facing tire manufacturers. Imports account for as much as 75% of the U.S. passenger tire aftermarket, making domestic production a defensive necessity rather than a strategic choice. The 11th-largest global tire company joins competitors in costly factory expansions to maintain market access as trade barriers reshape the industry.
The shift represents a reluctant adaptation to protectionist policies that have upended established manufacturing networks.
