Market Intelligence

Tyres Europe Warns CBAM Expansion Could Raise Tyre Costs

Published:
October 13, 2026
Author:
James Lockwood
Dr Adam McCarthy, secretary general of Tyres Europe | Image Credit: Tyres Europe

Tyres Europe has joined vehicle manufacturers and automotive suppliers in warning that the proposed expansion of the EU’s Carbon Border Adjustment Mechanism (CBAM) could add costs and compliance demands for European tyre producers.

In a joint intervention dated 5 October 2026, Tyres Europe, ACEA and CLEPA call for a more limited extension and say the proposed 2028 implementation deadline is too early.

Industry Calls for a Narrower Scope

The associations support CBAM’s aim of preventing carbon leakage, where production moves abroad or EU goods are displaced by imports because carbon costs differ.

Their joint letter argues that additional downstream products should be included only where material leakage risk is demonstrated and workable emissions methods, data and verification capacity are available.

They also seek simpler reporting and more proportionate default emissions values. The groups warn that complex supply chains can leave importers struggling to obtain actual emissions data from upstream producers.

Why Tyre Manufacturers Are Concerned

The tyre-specific concern is the treatment of imported steel inputs compared with competing finished tyres.

In a statement issued on 30 June, ReifenDeutschland, the tyre platform of Germany’s rubber industry association wdk, opposed extending CBAM to steel-based intermediates used in tyre production.

It argued that charging those inputs while finished tyre imports remain outside the mechanism would raise European manufacturers’ production costs and create a competitive disadvantage.

The October letter brings that established concern into a joint intervention across the automotive supply chain. It does not quantify the cost impact on tyre manufacturers.

For procurement teams, any assessment of exposure needs to start with the input’s precise customs classification and the applicable product list. A general description such as tyre steel does not establish CBAM coverage.

Existing Rules and Proposed Changes

CBAM’s definitive regime began on 1 January 2026. It covers selected imports in cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.

For covered imports, the financial timetable starts later: certificate purchases begin in February 2027. The first annual declaration and certificate surrender deadline is 30 September 2027, covering 2026 imports.

The proposed downstream extension is a separate legislative change targeting selected steel- and aluminium-intensive goods from 1 January 2028.

The European Parliament adopted amendments on 15 September, broadening the Commission’s proposed product scope and referring the file for interinstitutional negotiations. The extension’s final scope and timing have not yet been agreed.

The immediate issue for tyre manufacturers is therefore how the final rules treat their inputs and whether implementation requirements can be met. The associations’ warnings do not establish a resulting increase in replacement-tyre prices.

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Tags: Tyres Europe, CBAM, EU tyre manufacturing, carbon border adjustment, tyre steel inputs, ACEA, CLEPA, ReifenDeutschland, carbon leakage, EU trade policy

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