Goodyear Shuts Fayetteville Plant Amid Trump Tariffs, Iran War

Goodyear Rubber and Tire Co. announced the closure of its Fayetteville, North Carolina, plant, eliminating more than 1,700 jobs. The company said the decision was intended to improve Goodyear’s competitiveness and protect the long-term health of the business.

Reason

President Donald Trump’s trade agenda introduced sweeping “emergency” tariffs on a range of imports, including natural rubber. In March, the Office of the U.S. Trade Representative cited Thailand’s rubber trade surplus as justification for higher tariffs. The United States’ ongoing war with Iran has disrupted supply chains, raising the cost of imported raw materials that U.S. tire manufacturers rely on.

Reason

Goodyear reported a $249 million loss for first quarter of 2026, compared with a $115 million profit in the same period of 2025, before the tariffs were announced. The company expects a $46 million refund from Supreme Court’s ruling that declared the emergency tariffs unlawful. CFO Christina Zamarro estimated that inflation, tariffs, and war-related disruptions could impose $420 million of headwinds over the full year.

Reason

Goodyear’s public statement described the closure as a step to improve cost efficiency. CFO Zamarro said the $420 million headwind stemmed from increased raw-material expenses. The Supreme Court’s invalidation of the emergency tariffs offered partial relief. The U.S. Trade Representative’s office said Thailand’s surplus justified the tariffs.

Reason

Ed Gresser, former assistant U.S. Trade Representative, contended that tariffs on natural rubber would not create domestic rubber-tree jobs and would increase costs for U.S. manufacturers of tires and related products. Rubber World warned that the tariffs could raise prices for both imported and domestically produced tires, producing a “dual impact” on the market.

Reason

The sources attribute the plant closure to tariffs and war-induced cost pressures but do not provide quantitative analysis linking specific tariff rates to Goodyear’s loss. Consumer-price effects and alternative explanations, such as domestic demand fluctuations, are not addressed, leaving a gap in the causal narrative.

Reason

• “higher raw material costs” due to the war would force Goodyear to take “meaningful actions to strengthen our cost structure.” — Mark Stewart, CEO, Goodyear Rubber and Tire Co.

Reason

• “strengthen Goodyear's ability to compete in today's marketplace and support the long-term health of the business,” — Goodyear executive, City View interview

Reason

• “Tariffs on natural rubber, no matter how high, won't bring rubber-tree plantation jobs to Minnesota or North Carolina, but will raise costs and reduce sales for every U.S. manufacturer of airplane and truck tires, vibration dampers in bridges, specialized medical equipment, and so on,” — Ed Gresser, Vice President, Progressive Policy Institute

Reason

• “While domestic tire producers might see a slight net benefit from reduced competition, they are also facing tariffs on the import of raw materials like rubber,” — Rubber World, trade publication

Reason