Goodyear Tire (GT): Tariffs Create Opportunities

By Patricia Miller

Apr 04, 2025

2 min read

Goodyear shares surged around 12% as tariffs shield the U.S. tire maker from cost increases while boosting demand for its products.

Illustration of a Goodyear Tire factory in the United States with American flags, production lines filled with new tires, and a vibrant stock market graph showing an upward trend in the background.

#What You Need to Know

Goodyear Tire & Rubber Co (NASDAQ: GT) delivered strong performance following recent tariff announcements, with its stock climbing more than 12% in yesterday's session even as broader markets declined. This uptick is attributed to Goodyear’s distinct advantages over competitors, particularly Bridgestone, which faced a decline in share price as it depends more heavily on international manufacturing and imports.

Goodyear has the operational benefit of producing most of its tires within the United States, shielding it from the adverse effects of tariffs that are impacting manufacturing costs. Furthermore, as tariffs raise car prices, consumers may seek to extend the life of their current vehicles, potentially increasing demand for Goodyear tires.

#Why This Is Important for Retail Investors

  • Operational Resilience: Goodyear's U.S.-based production offers protection against tariff-related cost increases.

  • Market Demand: Increased demand for tires may arise as consumers hold onto older cars due to rising vehicle prices.

  • Competitive Advantage: Tariffs could hinder low-cost imports, allowing Goodyear a more advantageous market position.

  • Investor Confidence: A 12% increase in shares reflects growing investor confidence in Goodyear's business strategy and market stance.

  • Sector Influence: The developments within the tire industry can signal broader trends for investors interested in automotive and materials sectors.

#Relevant ETFs

  • Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RCD)

  • SPDR S&P Retail ETF (XRT)

  • iShares U.S. Consumer Goods ETF (IYK)

  • First Trust Nasdaq Transportation ETF (FTXR)

  • Invesco Dynamic Leisure and Entertainment ETF (PEJ)

  • Global X Lithium & Battery Tech ETF (LIT)

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.