Dale Earnhardt’s $3 Billion Sponsor Faces Historic Setback Due to Prez Trump’s Tariffs

In the late 1980s, the biggest battle in NASCAR wasn’t on the track, it was under the car. The fight between Goodyear and Hoosier Tires divided the garage and sent shockwaves through the sport. Dale Earnhardt, even then a rising titan, never wavered. While other teams flirted with Hoosier’s edge, Earnhardt stuck with Goodyear through blowouts, pressure failures, and intense criticism. “Loyalty with Richard [Childress] was key. There were a lot of races we wouldn’t switch,” said former crewman Will Lind.

It wasn’t blind loyalty. It was a trust in a brand that had been part of every major NASCAR moment. Goodyear fought back hard. After Hoosier broke their 526-race win streak in 1988, Goodyear brought in radial tires to reclaim their edge. At first, drivers hated them.

Here’s the sentence rewritten in active voice: “Everybody felt scared,” said Danny Lawrence, a former RCR mechanic. But at North Wilkesboro in 1989, Earnhardt stepped up and showed everyone how to do it. Would you like help rewording more quotes like this? He charged, backed off, then charged again, mastering the new tires and winning big. “We knew we were in Fat city with the Goodyear radials because the further I drove on them, the better I liked them,” he said after the race.

With this, Goodyear regained its status, and Hoosier soon withdrew from NASCAR. The victory wasn’t just for the company, it was a symbol of grit, innovation, and Earnhardt’s refusal to back down. But now, decades later, the same company that once stood its ground beside Dale Earnhardt is facing a new kind of battle. And this time, the opponent isn’t a rival tire brand. It’s an international trade policy. Goodyear, now a $3 billion NASCAR sponsor, is facing one of its most expensive challenges yet. The reason? President Donald Trump’s tariffs.

Tariffs deal a $300 million blow to Goodyear!

In a move aimed at boosting domestic production and punishing foreign competition, President Donald Trump’s administration imposed sweeping tariffs on imported raw materials and finished goods. Goodyear, despite being the largest U.S. tire manufacturer, was caught in the crosshairs. These tariffs, under Section 232, impacted automotive sector imports, which include both tires and essential materials used to make them.

The toll? A staggering $300 million in annual costs, as outlined in a May 8 investor report. That number isn’t just big, it’s historic. It marks one of the largest single-line hits in the company’s recent financial history. And while Goodyear says its exposure is less than its competitors, that doesn’t make the blow any softer. “That equates to about $4 per tire. Our competitors could be exposed three to four times as much. But it still hits us hard,” CFO Christina Zamarro said. However, Goodyear hasn’t sat still.

"In response to rising costs, [@Goodyear] confirmed with the Beacon Journal in April that it is increasing prices on consumer tires in the United States and Canada. Price increases of 4% took effect on Goodyear's U.S. tire sales May 1." – @BeaconJournal https://t.co/WqfPwMM8fA

— Adam Stern (@A_S12) May 10, 2025

The company sold off the Dunlop brand to Sumitomo Rubber Industries in early May, collecting $735 million in cash. This move is part of a broader effort to shave costs and strengthen its North American footprint. “Looking ahead, we know volatility in U.S. trade policy isn’t going away. But we’re positioned to compete,” said CEO Mark Stewart. The American brand also began increasing prices. As of May 1, a 4% hike hit U.S. and Canadian consumers. This wasn’t just about inflation, it was a direct response to the tariff squeeze. The goal? Offset cost pressures while maintaining margins.

Still, operating income for Q1 2025 fell from $247 million last year to $195 million this year. Despite the pain, Goodyear insists it’s playing the long game. The company is investing in factory modernization across the U.S., aiming to increase capacity by 10 million premium tires by 2026. “We’re evolving our product portfolio. We believe we can come out of this stronger,” he added. However, there’s some optimism to back it up. Year-to-date, Goodyear’s stock is up nearly 30%, a sharp contrast to losses for GM and Stellantis.

But Goodyear isn’t done trimming. Its chemical division, which pulls in $1 billion a year, is under strategic review. Another sale could bring in over $360 million, further bolstering its war chest. “We’re engaged with multiple parties,” Zamarro said, hinting at more changes ahead. Yet, even with all this maneuvering, NASCAR‘s tire partner can’t dodge the pressure entirely. With global supply chains still delayed and inflationary pressures steady, the Akron-based giant knows the road ahead isn’t smooth. But financial wins on paper won’t matter if it can’t hold ground where it truly built its reputation, on the track.

Goodyear’s recent struggles with NASCAR!

Despite its legacy and massive investment in racing, Goodyear isn’t just fighting Washington. It’s also dealing with backlash from inside NASCAR. The issue? Tires that aren’t living up to expectations. Earlier this year, at Bristol Motor Speedway, once known for chaos, cautions, and unforgettable short-track drama, fans walked away disappointed after a tame race. “I’m a little disappointed in today with the tire,” said Jeff Gordon after the Food City 500. “There was no fall-off and no wear.”

That’s not a small complaint. It cuts to the core of short-track racing. With Goodyear tires showing almost no degradation over 500 laps, drivers didn’t need to manage tire wear. That erased strategy, drama, and unpredictability, everything fans love about Bristol. Just four lead changes happened. Kyle Larson led 411 laps. And the response? Brutal. 80.7% of fans in Jeff Gluck’s “Was it a good race?” poll said “No.”

This isn’t the first time Goodyear has been caught in criticism. From uneven tire wear to conservative compounds that dull the action, many believe NASCAR’s official tire supplier is playing it too safe. It’s a tightrope: make tires that are durable enough to keep drivers safe, but unpredictable enough to make races exciting. The irony? The very tires that made Earnhardt a legend, the ones that required finesse, strategy, and adaptability, have now become part of the Next Gen problem. If Goodyear can’t figure out how to balance safety with spectacle, it may face another kind of withdrawal.

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