Continental said on Wednesday that it could face a material financial hit should the latest U.S. import tariff increase be extended to tyres. The companys finance chief put the potential impact in the "mid to high double-digit million euro" range, while reiterating that the change had not been incorporated into existing company forecasts.
The tariff move followed an announcement by President Donald Trump last week raising duties on cars and trucks imported from the European Union to 25% from the previously agreed 15%, after saying the EU had not complied with its trade deal with Washington. Continental noted that car parts manufacturers across Europe are encountering renewed pressure as a result of the tariff shift.
Roland Welzbacher, Continentals finance chief, told Reuters that the company was awaiting additional detail before taking further action, and that the newly announced tariffs were not reflected in current projections. He said the expected additional burden "would require again to think about measures to offset this cost like we did last year. So we need to focus on cost savings, and obviously we also need to think about commercial measures."
The companys comments underline the immediate uncertainty for suppliers in the automotive parts sector should policy makers apply higher tariffs to specific product groups such as tyres. Continentals estimate of a mid to high double-digit million euro hit signals a quantifiable but not fully defined exposure until tighter rules and scope for the tariffs are clarified.
Continental did not provide further detail on which specific measures it would adopt if the tariffs are applied, only that it would study options similar to actions taken the prior year. The firms emphasis on cost savings and commercial responses suggests management will weigh operational efficiencies alongside pricing and customer contract negotiations if needed.
For now, Continental remains in a holding pattern pending more information on implementation and scope. The companys acknowledgement that the potential tariff effect was not included in forecasts highlights a planning gap that would need to be addressed once regulators or trade authorities define the treatment of tyres under the new U.S. tariff regime.
Summary: Continental warns that if recent U.S. tariff increases are applied to tyres, the company faces a mid to high double-digit million euro hit; the cost is not included in current forecasts, and the firm is awaiting details before deciding on cost-saving or commercial measures.