What The Goodyear Tire & Rubber Company told the SEC could break it.

Goodyear's cost base is dominated by commodity raw materials: synthetic and natural rubber are its principal inputs (synthetic ~50% of all rubber consumed in 2025), and it purchases all of its natural-rubber requirements on the world market, alongside carbon black, steel cord, fabrics and petrochemical-based materials — most of which track crude-oil prices. Its exposure to synthetic-rubber market pricing increased after it sold its chemical business (Beaumont/Houston synthetic-rubber plants) on Oct 31, 2025, shifting from in-house production toward purchasing. Raw materials are the largest swing in COGS ($14.9B, 81.6% of sales), so commodity-price spikes that can't be promptly passed through or offset (procurement leverage, material substitution, lightweighting) compress margins.

“The principal raw materials used by Goodyear are synthetic and natural rubber. Synthetic rubber accounted for approximately 50% of all rubber consumed by us in 2025.”

As a global tire manufacturer that ships tires and sources raw materials across borders, Goodyear is exposed to tariffs and trade restrictions on both imported tires and imported raw materials/equipment. It flags that new or changed tariffs — including measures the U.S. has considered with respect to Canada and Mexico — reduce its flexibility to use its global manufacturing footprint to meet demand, can divert tariffed tires into Europe/Latin America/Asia (pressuring prices there), and can trigger retaliatory tariffs; broad-based tariffs have already raised its suppliers' costs, which they have passed (and may further pass) through. A multi-channel trade-policy exposure on both the cost and the manufacturing-network side.

“We have been, and could continue to be, negatively impacted by changes in tariffs, trade agreements or other trade restrictions on imported tires, raw materials and other goods or equipment.”

Within its regional segments Goodyear leans on a few countries: China accounted for ~44% and India ~21% of Asia Pacific net sales in 2025, and Germany ~17% of EMEA net sales — so the company states APAC results are highly dependent on China and India, and EMEA on Germany. APAC is a smaller share of total revenue, so the consolidated impact is modest (hence low severity), but a sharp downturn, regulatory shift, or trade disruption in China, India or Germany would disproportionately affect the respective regional segments. Bridged to the China node as the largest single-country segment exposure.

“China accounted for 44% and 38% of Asia Pacific's net sales in 2025 and 2024, respectively. India accounted for 21% and 17% of Asia Pacific's net sales for 2025 and 2024, respectively.”