With the 2020 US election shaping up to be the closest in the last two decades, no-one can yet say who will be the winning. However, share price analysts that are literally experts at hedging their bets, have compiled a list of post-Election share picks. In short, while growth is expected across the board in 2021, the recently-berated Goodyear is not the only tyre brand that would stand to gain from the end of Trump presidency.
In April 2019 the US Department of Defense awarded Goodyear a $38 million contract via its Defense Logisitics Agency. This three-year deal for the delivery of aircraft tyres is the most recent in a long supply relationship between the US tyre maker and the country’s military. This relationship continues, despite President Trump’s call for a boycott of Goodyear.
No nasty trick is off-limits in the run-up to the US presidential election. With his call to boycott Goodyear, President Trump has disavowed and repudiated the corporate culture nurtured by the tyre maker over decades. A culture distilled into a concise slogan, ‘Protect Our Good Name’. Non-subscribers can read the full text of this article here.
In order to prevent damage from ‘friendly fire’, Titan International Inc. has issued a statement distancing itself from the spat between US President Donald Trump and the Goodyear Tire & Rubber Company. Titan wants to make it clear that there is absolutely no link between it and the alleged Goodyear diversity training document that’s circulating on the internet.
The Trump administration upped the ante once again in the ongoing trade war between the USA and China on 18 September with the introduction of tariffs on all US$200 billion of imports including basically all categories of tyres, retreads and inner tubes. At President Trump’s direction the additional tariffs will initially be set at 10 per cent and will take effect on 24 September 2018. However, as of 1 January 2019, the level of additional tariffs will increase to 25 per cent.
The Specialty Equipment Market Association (SEMA) has voiced its disapproval of US President Trump’s aim to impose 25 per cent tariffs on a range of products imported from China; the US-based association, which represents the vehicle aftermarket, says it opposes these tariffs as well as the Trump administration’s tariffs on steel and aluminium and the threatened tariffs on imported cars and automotive parts – it considers them “as misplaced and having the potential to impose significant harm on US businesses and consumers.”
In mid-June US president Donald Trump announced plans to impose 25 per cent tariffs on US$50 billion worth of Chinese goods. However, the above round of tariffs was actually an additional wave that followed as part of the Trump administration’s ongoing trade war with China. Steel is at the centre of this dispute, with President Trump suggesting that China is dumping steel in America. But now US tyre cord makers could close due to steel tariffs.
David Dibert; Pixabay