Effective July 8, 2026, the tariffs protect the European market from unfair Chinese competition and could redirect trade flows toward North America.

The European Union has officially imposed anti-dumping duties on TC4 tires manufactured in China, published in the Official Journal of the EU on July 7, 2026, and entering into force the following day. Resulting from an investigation launched in spring 2025, the measures cover new tires for passenger cars, SUVs, light trucks, buses, and commercial vehicles. Three duty levels have been established: 4.3% for Hankook (which operates factories in China), 24.4% for approximately 60 producers including Continental, Goodyear, Pirelli, and Kumho, and 45.3% for all others.

A response to rapidly growing Chinese market share

According to the European Commission, Chinese tire imports surged 62% between 2021 and 2024, rising from 57 to 93 million units per year, while their market share climbed from 18% to 28%. Over the same period, European manufacturers’ market share declined by 7%, significantly impacting their profitability. These anti-dumping duties, set for five years, aim to restore fair competition. A parallel investigation into Chinese public subsidies is still underway and could result in additional duties by the end of 2026.

Why Canada should pay attention

For the Canadian tire industry, the EU’s decision is a signal that should not be overlooked. Duties this significant in Europe could prompt Chinese exporters to redirect volumes toward other markets — including Canada — intensifying pressure on Canadian tire dealers and manufacturers. Canada has implemented similar measures in the past; in this context, industry professionals and trade associations should remain vigilant to anticipate any competitive imbalances that may emerge in the Canadian tire market.

Image credit : Le journal du Pneumatique