Tiremakers offset US tariff through European sales

A tire production line of Hankook Tire in Clarksville, Tenn. / Courtesy of Hankook Tire

Korea’s major tiremakers are on course to overcome tariff challenges from the United States by expanding sales of value-added tires in Europe.

The three major tire manufacturers here — Hankook, Nexen and Kumho — were exposed to the prolonged 25 percent U.S. tariff shock for almost half a year beginning in April last year.

The tire firms, however, showed resilience in their 2025 earnings on their expanded sales in Europe. They succeeded in navigating the tariff headwind by widening sales for high-inch and electric vehicle (EV) tires, particularly for European clients, according to their earnings data.

Hankook Tire surprised the market by chalking up record annual sales of 21.2 trillion won ($14.6 billion) in 2025, up 125.3 percent from the previous year. Its operating profit also increased 4.6 percent to 1.84 trillion won during the same period.

The largest tire firm in Korea offset the U.S. tariff shock by increasing sales of tires larger than 18 inches and high-margin tires for EVs, the company said.

By market, Europe’s strategic importance is gradually increasing for Hankook. The firm’s sales portion of passenger car and light truck (PCLT) tires over 18 inches in Europe were 41 percent of their total sales across the globe in the fourth quarter of last year. The figure was 38.4 percent in the second quarter.

The tire firm also unveiled its 2026 goal of increasing a sales portion for premium high-inch tires and EV tires. In 2025, Hankook Tire’s sales of tires over 18 inches accounted for 47.8 percent out of its total PCLT tire sales. The sales portion of EV tires also reached 27 percent in the same category.

“We will increase the sales portion of the high-inch tires and EV tires to over 51 percent and 33 percent, respectively, this year, so we can enhance our profitability and solidify our presence as a value-added global tiremaker,” a Hankook Tire official said.

Nexen Tire's research and development facility in Seoul / Courtesy of Nexen Tire

Nexen Tire also reported robust sales growth of 12 percent last year on its expanded production in the Czech Republic. Its sales reached 3.19 trillion in 2025. This marks the first time that the firm's annual sales topped 3 trillion won.

The stronger distribution capabilities across Europe helped the firm offset the U.S. tariff shock, according to the company.

The tire firm’s operating profit, however, inched down 1.1 percent to 170.3 billion won during the same period, as it still had to grapple with the aftermath of the trade uncertainty in North America.

Nexen Tire also pledged to continue strengthening ties with global carmakers to absorb diverse tire demand not just for EVs, but cars with internal combustion engines.

“The external sales growth was driven by our expanded tire supply in Europe, and we focused on diversifying our sales territories in the face of the item-specific tariff from the world’s largest economy,” a Nexen official said.

Kumho Tire's research and design center in Yongin, Gyeonggi Province / Courtesy of Kumho Tire

Kumho Tire, which is set to unveil its 2025 earnings on Friday, is also widely expected to report increased sales. According to a forecast by market tracker FnGuide, Kumho Tire’s 2025 sales are estimated to reach 4.75 trillion won, up 4.7 percent from a year earlier.

The company is also betting big on the European premium tire market with a plan to start operation of its first European plant in Poland in 2028.