Toyo Increases Investment in the US

The tariff policy of US President Donald Trump, who increased import duties, continues to affect the tire industry, and, as Toyo Tire became known to Nikkei, by 2030, the Japanese company will invest around $200 million in expanding and modernizing its plant in Georgia to increase the production of tires for SUVs and other large vehicles.

The US market is key for Toyo, which receives almost 70% of its revenue in the US. Currently, about half of the tires supplied to the country are produced at the company's plants in Japan and Serbia, and after the introduction of new duties, it was decided to transfer production to the US.

The capacity of the plant in Georgia, which is Toyo's largest production site, will be increased by 5%, and the production of tires for large vehicles will grow by 10%. In addition, the production lines for SUV and pickup tires will be modernized, and new equipment will be installed.

Under the trade agreement between Tokyo and Washington, auto parts from Japan will be subject to 15% duties. At the same time, tariffs for goods in this category from Serbia are set at 25-35%.

Toyo expects that additional investments and localization of production in the US will help mitigate the impact of new duties, reduce costs, and increase the company's competitiveness in the local market.

Nikkei notes that against the backdrop of disagreements between Donald Trump and Tesla founder Elon Musk over increasing oil and gas production in the country, the attractiveness of electric cars is decreasing, while hybrids and vehicles with internal combustion engines, which have a longer range, continue to be successful, and the growth in their popularity is another reason why Toyo intends to increase investment volumes.