At Michelin, they assess the possible consequences of Donald Trump's tariff policy

Michelin is assessing the potential consequences of possible new US tariffs on goods from Canada and Mexico, but it's still too early to say how they might impact the company's supply chains and investments, according to a spokesperson cited by Reuters.

Most of the Michelin tires sold in the US are produced domestically, where the company has a "strong industrial presence" and 21 manufacturing facilities, the spokesperson said.

Reuters notes that European companies operating in North America are currently assessing the economic implications of potential new trade tariffs and revising their strategies in terms of production and pricing in the US. Earlier, US President Donald Trump announced plans to impose 25% tariffs on goods from Canada and Mexico, as well as 10% tariffs on products from China, but later agreed to delay the tariffs for 30 days for the first two countries.

"If tariffs are introduced, it could potentially impact the company's strategy in terms of supplies and investments," the Michelin spokesperson said.

Michelin employs over 23,500 people at its manufacturing facilities in the US and Canada. The company operates two plants in Mexico (in Queretaro and Leon) and three in Canada (in Pictou, Bridgewater, and Waterville). As of the end of 2023, the North American market accounted for 39% of Michelin's sales.

Michelin will release its 2024 results next week.

Photo: Jim Watson / AFP