Tire demand, traffic continues decline

While prices for raw materials have seen year-over-year declines, tariffs are raising the price of tires, causing consumers with stretched wallets to opt for lower-tier tires.

July 3, 2025

3 min read

stack of tires — Tariffs are likely the cause of the drop in sales, signaling that vehicle owners are continuing to defer maintenance and repairs in an unstable economy.

Tire dealers report that retail trends for May were in the negative—again. This marked the fourth consecutive month of tire sale declines.

“Dealers saw average sellout declines of 1.4% in May, following a 0.9% drop in April,” FleetOwner-affiliate Modern Tire Dealer reported.

Tariffs are likely the cause of the drop in sales, which have taken place in every region of the U.S., save the Southeast, signaling that vehicle owners are continuing to defer maintenance and repairs in an unstable economy.

See more: ACT says Trump trade policies create 45% chance of recession

While most raw materials necessary to make tires have experienced year-over-year price declines—a 4.6% year-over-year decrease for raw material costs in the second quarter is expected—tariffs have increased the retail prices of tires. As a result, consumers have opted for more affordable, lower-tier tires.

Not only are consumers opting for more affordable tires, but tire dealers have also reported that fewer consumers are visiting retail stores. Those in the market for tires are choosing tier-three tires, which are considered high-value tires at the lowest possible price.

Read more about tire sales from John Healy, managing director and research analyst with Northcoast Research Holdings, at Modern Tire Dealer, a FleetOwner affiliate and Endeavor Business Media publication.