Published by Global Banking and Finance Review
Posted on February 5, 2025
(Reuters) - Michelin is assessing the impact from possible U.S. tariffs on Canada and Mexico but it is too early to estimate consequences from the levies on its supply chain and investments, the French tyre maker said on Wednesday.
Most of the tyres Michelin sells in the United States are produced locally, a spokesperson for the company told Reuters, highlighting the firm's "strong industrial presence" in the country with 35 facilities.
WHY IT'S IMPORTANT
European firms with operations in North America are assessing the economic implications of threatened U.S. trade measures, and are scrambling to review their production and pricing strategies in the United States.
U.S. President Donald Trump said at the weekend he would impose 25% tariffs on goods from Mexico and Canada and 10% on China but on Monday agreed to a 30-day delay in imposing them on the United States' two neighbours.
KEY QUOTE
"If confirmed, these measures could potentially impact the Group's sourcing and investment strategy", the Michelin spokesperson said.
CONTEXT
Michelin employs more than 23,500 people in its production sites across the U.S. and Canada. It has two plants in Mexico - Queretaro and Leon - and three in Canada - Pictou, Bridgewater and Waterville.
The North American market accounted for 39% of its total annual sales at the end of 2023, the company said in October.
Michelin will release its 2024 results on Feb. 12.
(Reporting by Alessandro Parodi, Gianluca Lo Nostro and Gilles Guillaume, editing by Gareth Jones)
