The global truck and bus tyre retreading industry is undergoing a pivotal transformation this year. We opened 2025 by asking if there was a year of upheaval ahead for the industry. It was a pertinent question at the time.
Still, the outlook has somewhat solidified six months later as the global retreading sector looks to navigate challenges that are not purely businessrelated, but are now becoming so much more complex due to the plethora of regulations being put in place that, outside of day-to-day operation, sometimes need a degree in public policy to decode. If operating conditions weren’t tough enough, rules, regulations, tariffs, compliance and duties are now part of the retreaders’ lexicon like never before. Seismic shifts in the tyre industry are underway, and retreading is right at the forefront.
Increasingly divergent regulatory approaches across key regions are shaping our industry like never before. What is often called for by the industry, regulation, and schemes to promote an essential, sustainable practice that should be at the forefront of everyone’s minds has become a double-edged sword, bringing complexity, confusion, and often the opposite of any intended consequence to aid a tough-to operate-in industry.
While sustainability and economic resilience remain common goals globally, the policies being adopted, ranging from market liberalisation to green-finance alignment, are generating a fragmented regulatory environment that demands strategic regional adaptation. In this edition, we’ve already taken a look at the complexities of the recent spate of changes driven by disparate EU policy making, but we wanted to look at how this confusion isn’t solely a European issue, we wanted to do a comparative analysis of developments from the past few months across Europe, the United States, South America, and Southeast Asia, offering critical insights for stakeholders navigating this evolving landscape.
EUROPE: TWO STEPS FORWARD, ONE STEP BACK
In Europe, retreading has evolved not only as an economic option but also as an agenda. A key milestone was seemingly reached in June 2025, when the European Commission confirmed that retreaded tyres qualify as “taxonomy compliant” under the EU Taxonomy Regulation. This clarification aimed to remove a major barrier to their adoption in sustainability driven procurement and investment strategies, particularly among public fleets and ESGconscious enterprises. However, as you’ve read in other areas of this edition, not all was as clear-cut as initially expected. Beyond taxonomy alignment, policy advocacy is intensifying. EuRIC’s May 2025 manifesto outlines an ambitious vision for a circular-tyre economy. Key proposals include mandatory targets for recycled content, EU-wide end-of-waste criteria, and the introduction of Digital Product Passports (DPPs) to enhance traceability and transparency.
However, tensions may arise between recycling oriented eco-design policies and retreading’s reliance on durable casings. Policymakers will need to strike a careful balance between these goals to avoid undermining the reuse segment of the circular economy. Research has clearly shown that the 3Rs are essential for a sustainable tyre ecosystem (reduce, reuse, recycle), cutting out any one of these elements severely undermines the aims of sustainability. Still, regulatory confusion may, in fact, not be what we, as the second ‘R’, were looking for in recent regulation changes. Unlike in some regions, European retreaders continue to benefit from trade defence mechanisms. The European Union’s January 2025 decision to impose anti-dumping and countervailing duties on Chinese tyre imports was intended to stabilise the market and protect domestic producers by establishing a price floor for low-cost imports.
However, the anticipated boost to the retreading sector has not materialised. Available data shows little evidence of a meaningful revival in retread activity, suggesting that the industry’s concerns about the limited impact of these measures are well-founded. As Vaculug’s Jorge Crespo pointed out in February when we spoke to him: ”Legislation has to be more inclusive, more focused on incentives. We could get there, but we’re going the long way round. Europe needs to lead by example, and it’s not about penalising; it’s about incentivising’.’
Ironically, the recent furore seems to have only exacerbated this perception among many and, although the Taxonomy legislation is new, the figures for Q12025 don’t look fantastic, according to ETRMA: “In the Truck tyre category, the volume in the first quarter was very weak at -4% versus the same quarter of 2024 and -11% compared with the prepandemic first quarter of 2019. This category is significantly affected by economic and political uncertainties’.’ European retreading needs some clarity from governments, and the opposite seems to be what they’re getting.
UNITED STATES: FISCAL INCENTIVES, INDUSTRIAL STRATEGY AND PROTECTIONISM SEEM TO BE WORKING
The United States, despite the trade chaos it is causing outside of the US, is adopting a markedly different stance on retreading, which most operators are welcoming. It is treating retreading not merely as an environmental tool, but as a matter of industrial policy and supply chain resilience, maybe in the face of more isolationist policies being enacted more broadly. In May 2025, a bipartisan effort to support he sector took shape with the reintroduction of the Retreaded Tire Jobs, Supply Chain Security, and Sustainability Act (H.R. 3401).
Spearheaded by Representatives Darin LaHood (R-IL) and Emilia Sykes (D-OH), the bill aims to stimulate domestic demand for retreaded tyres through two key provisions: a targeted federal tax credit and a procurement mandate for federal fleets. The proposed legislation has gained support from major industry players, including Goodyear, Bridgestone and the US Tire Manufacturers Association (USTMA), all of whom view it as a much-needed response to the long-term decline of the US retreading sector. It almost feels like this was the sort of legislation EU retreaders were looking for, but recent legislation fell short of what the US is proposing. If passed, H.R.3401 would offer fleet operators a tax credit of upto 30 percent of the purchase price for domestically retreaded commercial tyres, capped at $30 per tyre, for tyres placed in service between 2026 and 2028.
In addition, the bill would require federal agencies to prioritise retreaded tyres over new, non-retreadable options, provided suitable alternatives are available. According to Anne Forristall Luke, President and CEO of the USTMA, the bill represents a critical opportunity to strengthen the sector. “Approximately 15 million tyres are retreaded annually in the US, including nearly 44 per cent of commercial truck tyres in the US and Canada; she said. “By providing tax credits to fleet purchasers who buy Americanmade retreaded commercial tyres, we have a critical opportunity to support domestic manufacturing and strengthen our national economy’.’ Luke highlighted that retreading plays a central role in American remanufacturing, supporting over 51,000 direct jobs and more than 268,000 across the broader tyre industry. Most retreading businesses in the US are small, independent operations, typically employing between 10 and 60 people.
However, the sector’s competitiveness has been undermined by the influx of imported tyres, around 65 per cent of which are deemed unsuitable for retreading due to their construction. Strategically, the bill positions retreading as an instrument of economic security. By leveraging tax incentives and federal purchasing power, H.R.3401 seeks to tip the scales in favour of domestic retreaders, particularly smaller fleets that are more sensitive to upfront costs. In doing so, the legislation reframes retreading as not just a sustainable alternative but a strategic asset for national resilience.
This is in addition to the numerous tariffs and anti-dumping duties being imposed on some of the largest tyre-importing nations to the US, as well as transhipment tariffs oncountries likeVietnam,aimed at stemming the flow of Chinese-manufactured tyres. As of mid2025, the complex and multi-layered series of tariffs on imported tyres remains somewhat opaque. In our first edition of the year, we noted that it was a little too soon to call any effects. However, what we’re currently seeing is a benefit for retreaders. In the first quarter of 2025, US imports of truck and bus tyres from China and Thailand dropped by 7% and 10% respectively, reflecting the impact of antidumping and counter vailing duties.
While other countries not subject to such tariffs have stepped in to fill the gap, the broader tariff landscape has led to price increases on new tyres of up to 10%, citing rising costs of both finished goods and raw materials, such as natural rubber. As a result, retreaded tyres are gaining ground as a more affordable alternative, with market forecasts indicating strong growth for the US retreading sector in 2025.
SOUTH AMERICA: STAGGERINGLY DIVERGENT POLICIES
While the EU seems to be delivering a lack of clarity, and the US retreading sector is moving in very positive directions, South America continues to be somewhat of a proving ground for massively divergent approaches to retreading, presents a volatile mix of policy extremes, serving almost as a real-time laboratory for the global retreading industry. We have covered the specifics of South America’s variety of approaches to retreading in detail elsewhere in this issue.
To summarise, the continent simultaneously demonstrates three profoundly different governance approaches: deregulation, targeted fiscal stimulus, and data-driven climate policy, with very real and direct consequences for local players that stand in sharp contrast to their regional neighbours, let alonethe rest of the world. In Brazil, the world’s second-largest retread market, the industry faces a severe threat from a proposed ban on the use of retreaded tyres on federal highways.
The bill, introduced in late 2024, has triggered strong opposition from the Brazilian Association of Tyre Retreading (ABR), which argues that the measure is misguided. ABR asserts that retreaded tyres meet rigorous safety standards and contribute significantly to cost savings and job creation, warning that the ban could jeopardise 300,000 jobs. At the same time, legislative steps to support the sector are being proposed.
The Senate recently approved Bill PL 2470/2022, which Retreading Business covered back in 2023, aims to exempt retreading services and equipment purchases from key federal taxes. The bill, now under review in the Chamber of Deputies, has been accompanied by growing institutional recognition, including the establishment of a national “Retreaders’ Day” and formal acknowledgement from the Ministry of Environment of the contribution of retreading to the circular economy. Argentina, by contrast, is experiencing aggressive economic liberalisation, which has created a challenging environment for retreaders.
Import duties on new tyres have been cut from 35% to 25%, with further reductions planned, while reference pricing has been eliminated. The result is a flood of low-cost imports, many of which are unsuitable for retreading, triggering a 30-35% decline in business nationwide. Prices have plunged to as low as $90 per retread, fuelling a race to the bottom that threatens quality and safety standards.
The Argentine Retreaders Association (ARAN) is responding with efforts to reprofessionalise the sector, advocating for technical regulations and fiscal incentives, and working with regional partners such as ALARNEU to harmonise quality standards across Latin America. Chile, meanwhile, has proven to be a leading light in the global industry, breaking new ground by integrating retreading directly into its national climate policy. A study commissioned by CINC and ARNEC, and independently verified by KPMG, found that are treaded tyre generates 1.147 kgCOlli/kg-compared to 6.56 kgCOlfu/ kg for an imported new tyre.
These figures will be incorporated into Chile’s HuellaChile emissions platform from July 2025, allowing f leets that use retreads to report significantly lower carbon footprints. The move is expected to unlock access to green procurement contracts and climate-related tax incentives, reinforcing retreading as a tool for both sustainability and competitiveness.
SOUTHEAST ASIA: THE RETREADING CANARY IN THE MINE
While some advancements are being made in Southeast Asia (SEA), it remains a notable example of what could happen to the rest of the retreading industry without the hard work and collaboration between governments, the industry, and dedicated legislation to protect it. The flood gates always feel open in SEA, and there treading sector often feels, with a few exceptions, that it has given up and is waiting to be engulfed. The industry’s negative perception in the region has recently been exacerbated by a spate of truck accidents for which retread tyres have been wrongly blamed.
Some, like in Brazil, are calling for bans on TBR retreads. With a highly fragmented regional landscape, plagued by are al lack of transparency, it often falls to Malaysia, which has the most professionally organised retreading sector in the region, to be the champion of retreading in Southeast Asia. However, we are also now seeing some moves from Indonesia to professionalise their market, with some recent global collaborations cementing their desire to drive progress. Alongside much negativity, progress is still being made.
Malaysia plans to introduce QR codes and RFID tags on retreaded tyres to combat counterfeit products, with support from the local Ministry of Transport. Meanwhile, Vietnam and the Philippines are aligning their national standards with UNECE Regulations under the 1958 Agreement, and both countries are working to align standards for retreaded tyres under R108 and R109 as part of this ongoing harmonisation roadmap. Vietnam has also enacted an EPR law requiring tyre manufacturers and importers to recycle at least 5 per cent of their products. This is expected to formalise casing supply and strengthen the retreading sector; however, the effects on the local industry are not only unknown but may be unknowable.
A certain level of regional collaboration, as seen in Latin America, is becoming increasingly essential to protect the SEA retreading industry; however, no operator or nation appears willing to take the lead in establishing this. In Europe, the US, and parts of South America, efforts are underway to stem the flow of unretreadable tyres or improve the quality of the global casing supply. In contrast, SEA is an open floodgate to cheap, poor-quality tyres, with a race to the bottom seemingly unavoidable. This has huge repercussions for the industry, as it’s stuck in a vicious cycle of reduced quality to remain price-competitive.
This, in turn, causes an even worse perception of retreads, which has a more significant impact on local regulation than any specific facts coming from the industry itself. With a lack of a strong local new-tyre industry, the retreading sector is largely on its own in SEA, not engaging with governments and legislation formation in any particularly meaningful way. External factors affecting SEA also include steep US tariffs on ASEAN tyre exports, particularly affecting Vietnam and Thailand, prompting manufacturers to redirect their products to local markets, which creates an oversupply of cheap new tyres.
Again, regulation doesn’t seem to be an option. External factors affecting SEA also include steep US tariffs on ASEAN tyre exports, particularly affecting Vietnam and Thailand, prompting manufacturers to redirect their products to local markets, which creates an oversupply of cheap new tyres. Again, regulation doesn’t seem to be an option.
INDIA: REGULATION-LED STRUCTURING OF THE RETREADING SECTOR
India has recently introduced a series of regulatory reforms aimed at formalising and improving standards within its tyre retreading industry. Unlike the incentivebased approach seen in the United States or the taxonomy-linked framework developing in Europe, India’s strategy is primarily regulation driven, focusing on environmental compliance and product quality. The most significant development is the inclusion of tyre retreading within the scope of the Hazardous and Other Waste (Management and Transboundary Movement) Amendment Rules, 2022.
This legislation recognises retreading as an approved method for managing end-of-life tyres and brings it formally under the country’s Extended Producer Responsibility (EPR) regime. Under the EPR framework, tyre producers and importers are required to recover a set percentage of the tyres they place on the market. To meet these obligations, they can now purchase EPR credits not only from recyclers but also from registered retreaders. In turn, retreaders are required to register with the Central Pollution Control Board (CPCB) and report their activities through a national online portal.
Each tyre processed generates a retreading certificate, creating a traceable system that links retreading output directly to compliance targets for manufacturers. A Gazette notification issued in March 2024 has reinforced these requirements, mandating monthly reporting of retreading volumes. Around 800,000 tyres were retreaded under the new framework in the past year, indicating early engagement from formal sector operators, even though the retreading sector is still growing primarily in the ‘informal’ sector, as it’s known in India.
Alongside these environmental measures, the Bureau of Indian Standards (BIS) has introduced mandatory certification for retreaders. This applies to the entire retreading process, encompassing the materials used, workshop procedures, and the performance of the finished product. All retreaders operating within the formal system are now required to comply with BIS standards covering tread rubber specifications, process control measures, and product testing. The aim is to ensure that retreaded tyres meet defined safety and performance benchmarks, reducing variability in quality across the market.
Together, the introduction of the EPR mechanism and the enforcement of BIS quality standards represent a more structured approach to managing tyre retreading in India. The reforms aim to enhance the sector’s profile, enhance its environmental impact, and address safety concerns associated with unregulated operations. While implementation challenges remain, particularly in transitioning the large informal sector, India’s regulatory framework now provides a clearer foundation for developing a more accountable and consistent retreading industry. India is also a market that can sustain itself, meaning it isn’t as affected by external factors, which is proving to be a huge benefit to the local retreading industry.
A MULTI-FACETED FUTURE FOR RETREADING
he global regulatory trajectory for tyre retreading is no longer convergent. Such disparate regional approaches are creating a varied set of pressures on retreaders, especially those operating across multiple jurisdictions. For these businesses, staying compliant now requires not only operational efficiency but also a growing understanding of local environmental policy, trade law, and certification schemes. Retreading has always been part of the global supply chain, but that interconnectedness is now adding new layers of complexity.
This fragmentation is also prompting companies to explore opportunities in emerging markets, where regulation may be lighter but demand for cost-effective tyre solutions is rising. While this article has focused on developments in Europe, the United States, South America, Southeast Asia and India, it’s worth noting that Africa and the Middle East are also becoming more active in the retreading space. These regions could offer future growth opportunities, especially if lessons from more mature markets help inform their regulatory development. Interestingly, the lack of consistency in global regulation does not appear to be halting the broader momentum behind retreading. In many cases, it is simply reshaping where and how progress occurs.
Some markets are turning to fiscal incentives, others to environmental compliance, and a few to regional harmonisation. The result is a complex, shifting landscape-one that continues to challenge assumptions but also demonstrates the resilience of the retreading sector. As the regulatory picture evolves, clarity and coordination-at least at the regional level-will be critical. For now, retreading remains caught between policy ambition and practical implementation. Yet, despite the differences, there is a shared recognition across markets: retreading has a central role to play in building a more sustainable and costeffective tyre ecosystem. How that role is supported will determine its future impact.
