On February 5, Michelin stated it is evaluating the potential consequences of impending U.S. tariffs on Canada and Mexico. The French tire manufacturer indicated it is premature to predict the impacts on its supply chain and investments.
A company spokesperson informed Reuters that Michelin predominantly sells tires produced within the U.S., underscoring its "strong industrial presence" with 35 facilities in the country.
European companies operating in North America are analyzing the economic effects of anticipated U.S. trade actions and adjusting their production and pricing strategies in the U.S.
President Donald Trump recently announced plans for tariffs on Mexican and Canadian goods, along with existing tariffs on Chinese imports, which were subsequently deferred for 30 days for the U.S.'s neighboring countries.
If confirmed, these measures could potentially affect the Group's sourcing and investment decisions, noted the Michelin spokesperson.
Michelin has over 23,500 employees across its production sites in the U.S. and Canada, including two plants in Mexico (Queretaro and Leon) and three in Canada (Pictou, Bridgewater, and Waterville).
In October, the company reported that the North American market represented 39% of its total annual sales by the end of 2023.
Michelin is set to announce its 2024 results on February 12.