Alphabiz - EU Imposes Up to 52% Tariffs on Chinese Tires, Disrupting Korean Makers’ Europe Strategy

Photo courtesy of Yonhap News

[Alpha Biz= Ellie Kim] The European Union’s decision to impose tariffs of up to 52% on Chinese-made tires is expected to disrupt the European expansion strategies of South Korean tire manufacturers, prompting a shift toward increased local production.

According to industry sources on May 10, the European Commission has recently notified tire manufacturers of provisional tariff rates, with final rates set to be confirmed by mid-next month. The move follows a petition filed in April last year by the European tire industry alliance, which argued that low-priced Chinese imports were undermining the local market.

Under the proposed measures, Kumho Tire and Nexen Tire face tariffs of 29.9%. Both companies plan to file objections and request further investigation before the final decision is made.

Given that Europe accounts for roughly 40% of total sales for Korea’s major tire makers, the tariffs are expected to have a significant impact. Korean firms have been competing globally by offering quality comparable to premium brands such as Michelin at more competitive prices.

The new trade measures are likely to accelerate supply chain restructuring. Kumho Tire is expected to expand production at its existing bases in Korea and Vietnam, while also advancing plans to build a new plant in Poland by 2028. Nexen Tire plans to respond by ramping up utilization at its Czech factory to full capacity.

Meanwhile, Hankook Tire & Technology faces a significantly lower tariff rate of around 3.4%, supported by its established local production system in Hungary. Its relatively lower reliance on China-based production—about 30% of its European sales—has been cited as a key factor behind the more favorable tariff treatment.

Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)