The president & CEO of the Tire & Rubber Association of Canada details how the construction, mining, and transportation industries there may face a slowdown with trade disputes looming.
Due to the recently announced 25% tariffs on all steel and aluminum imports from Canada by the Trump Administration, Canada OTR tyre sales face economic uncertainty. Construction, mining, and transportation – three major drivers of OTR tyre demand in the country – are already seeing signs of a slowdown.
Carol Hochu, president & CEO of the Tire & Rubber Association of Canada, provided an economic update for Canada and its provinces in the face of these trade concerns. She emphasized that, since construction, mining, and transportation industries drive Canada’s OTR tire demand, election uncertainty in the U.S. in 2024 led to a slight downturn in sales.
“There was growth in large OTR tyres from 2020 to 2023, and this was followed by a 1% drop in 2024 over the year previous,” Hochu said.
Tariffs and Trade Concerns Impacting Canada OTR Tyre Sales
According to Hochu, trade policy between Canada and the U.S. is a major concern. She said tariffs on Canadian exports could create serious economic challenges across multiple industries, including energy, manufacturing, and agriculture.
“Canada is preoccupied with the prospect of tariffs,” Hochu says. “A lot remains unclear and no one really knows how long it will last or if more rounds of retaliation are in store. Canada’s leading banks are calling for cooler heads to prevail. They expect that trade disruptions will start showing themselves in the second quarter.”
Interest rate cuts and inflation control could provide some relief. However, Hochu noted that the possibility of a trade dispute with the U.S. continues to cast a cloud over industries that drive OTR demand.
