MTD 100 Execs Talk Tariffs, Other Market Forces

Tariffs, price hikes and other topics are top-of-mind among leaders of some of the largest independent tire dealerships in the United States. 

What are the most pressing challenges facing today’s MTD 100? What opportunities will the rest of the year bring? Top executives provide their thoughts in this exclusive lead-in to the 2025 MTD 100 list. 

“There is a lot of uncertainty in the economy right now,” says Dean Muglia, CEO of Scottsdale, Ariz.-based Discount Tire, No. 3 on this year’s MTD 100, with more than 1,200 stores. 

Customers, he explains, “face an overwhelming amount of choices when it comes to their tires, which also means people in our stores are dealing with more SKUs than ever before.” 

Staffing remains a critical challenge, says Chris Ripani, chief operations officer at Sun Auto Tire & Service Inc., which is based in Mesa, Ariz., and is the fifth largest dealership on the 2025 MTD 100, with more than 500 stores. “Customers today are more price-conscious. On the operational side, inflation has added complexity, but we’ve stayed disciplined on pricing and cost control.” 

Ripani says that “tire sales tied to preventative maintenance (will) continue to grow, especially as customers look to extend the life of their vehicles. We’re also seeing sustained strength in the fleet and light commercial segments, where reliability and uptime matter most.” 

“It is a very challenging market right now with the constantly evolving state of tariffs,” says Tom Fanning, an executive at Columbia, Miss.-based Southern Tire Mart LLC, No. 8 on the 2025 MTD 100 with 220 outlets. “Trucking is down and we see that in every quarterly update from fleets. Interest rates are affecting construction and overall consumer confidence is weak. The pricing and related volatility is creating a flight to value and fleet orders are on an as-needed basis. Everyone is tightening their belts, so the environment is challenging. I think there will be a balancing between USTMA (U.S. Tire Manufacturers Association) and non-USTMA supply throughout the year as sourcing is a huge topic. Manufacturers will struggle with sourcing to avoid some of the punitive tariffs in the global landscape.” 

Fanning says Southern Tire Mart sees opportunities “on the service side. The price inflation imposed by the tariffs on new tires will make it an even more compelling offer for fleets to reduce their tire program costs.” 

“Right now, we are witnessing dealerships scramble to understand the impact to their business from tariffs,” says Jamie Ward, CEO of Cincinnati, Ohio-based Tire Discounters Inc., which has 215 locations and occupies the No. 9 spot on this year’s MTD 100. “There is a lot of uncertainty in consumer behavior, with interest rates remaining high and tire costs increasing to keep up with it. I’m concerned that retailers will reduce pricing unnecessarily in reaction to low demand. That will cause a ripple effect that will reduce or compress gross margin and destroy retailers’ profits.” 

Ward’s advice for other dealers? “Weather the storm and be disciplined in any price reductions.” 

The market “certainly has been challenging,” says Don Barnes III, “chief tire guy” at Allen Park, Mich.-based Belle Tire Distributors Inc., the 11th largest dealership on the MTD 100, with 185 stores. “We’ve been facing several headwinds. Economic pressure has certainly been at the forefront, which has led to a lot of deferment in tire replacement and a lot of deferment on mechanical repair. I think we all were spoiled by what happened in 2020, 2021 and 2022. We loved having 10%, 15% and 20% growth, year-over-year. We’re getting back to legacy, historical trends. With that said, every (challenge) poses an opportunity. What we’ve done is really lean into these challenging moments and headwinds and look for ways to improve our overall business.” 

“The U.S. tire market is currently experiencing mild replacement demand, driven in part by consumers’ concern about their household budgets, while they invest in their aging vehicles versus purchasing newer ones,” says Joe Zaccheo, CEO and president of Norwell, Mass.-based Sullivan Tire Co. Inc., which has 103 stores and is No. 15 on the 2025 MTD 100. 

“As a result, there’s pent-up demand for replacement tires. While consumers seek quality products at a reasonable price, we’re also seeing a continuation of a trend that started last year, where many are opting to purchase perceived value and performance at a reduced cost, i.e. flight-to-price. This indicates a market where reliability and brand trust are in conflict with value perception. 

“We see several key opportunities in the market both now and through the remainder of the year,” says Zaccheo. “As vehicles stay on the road longer, proactive communication around upcoming service intervals and expected costs can add real value and build trust. Another opportunity lies in managing our inventory more strategically to ensure we’re aligned with current and anticipated demand.” 

Daniel Horn, vice president of sales at Wilkes-Barre, Pa.-based McCarthy Tire Service Co. Inc., which, with 76 outlets, holds the 20th spot on the 2025 MTD 100, says that “as of mid-year, we feel the market is somewhat stabilized, but is very dependent on the geographical region where you are located. While business is not back to the 2021 or 2022 numbers, it is drastically better than the soft market we had to deal with in 2023 and early-2024. 

Customer demand is starting to rebound due to increased freight volumes, increased fleet maintenance activity and more normalized inventory levels at both fleet and dealer. The replacement market is outperforming OE at this point due to fleets holding on to trucks longer than ever.” 

That said, “pricing is always a challenge and with impending tariffs, it has become even more complicated for dealers and for fleets. We all know how the talk of tariffs has affected us and the uncertainty it brings about pricing and availability. This will continue to be a hot topic of conversation as we move through 2025.” 

Demand in Auburn, Maine-based VIP Tires & Service’s market has been “steady,” says CEO Tim Winkeler. With 76 locations, VIP Tires & Service is tied with McCarthy Tire Service at No. 20 on the MTD 100. 

“Unit sales growth over prior year is modest,” notes Winkeler. “Demand for winter tires this past season was disappointing again, as the weather was not conducive to a strong selling season. Overall, we are satisfied with where things are on the tire side of our business.” 

However, Winkeler observed that customers deferred “maintenance and tire replacement more often this spring than we’ve seen in a long time. Many customers are stretched financially further than they have been in the last several years. According to the Federal Reserve’s data, average consumer debt continues to grow and we see the effect of this in how some of our customers are approaching auto expenses.” 

Commenting on the rest of 2025, “tariffs on imported new vehicles, if they stick, are likely to suppress new vehicle sales, which in turn means that many consumers will put off buying a new car and they will keep their current car longer. That would be a tailwind for our business, both on the tires side, as well as the mechanical service side. But the tariffs are also likely to cause inflation for the parts and tires that we purchase, which will translate into higher prices to our customers.” 

“The buzzword is ‘tariffs’ and the uncertainty around it,” says Parham Parastaran, CEO of Champaign, Ill.-based Left Lane Auto, No. 23 on the MTD 100, with 62 locations. 

“The reality is that tire prices have been rising disproportionately to other goods for decades, without any reversal. The demand for tires will not materially change as people have to drive vehicles. It can slow down a bit, but over time it will be flat for a while. The most significant thing happening now and something that will continue to happen is the shift to tier-three and tier-four tires. This shift, coupled with too much competition, makes it very difficult to differentiate as a tire shop. Price will be king. This pressure isn’t unique, but I believe it will accelerate. The financial challenges the consumer faces will be our biggest battle and opportunity in how we manage that.” 

Customers holding onto their cars longer will translate into opportunities, says Larry Sutton, founder of RNR Tire Express and chief officer SPF MGT CO LLC, No. 52 on the MTD, 100 with 24 stores. “I really believe we will continue to see increase in demand throughout the year. At least 50% of our new installs have been with previous customers, so anyone with decent brand loyalty should be seeing at least an extra set per previous customer.” 

“At this time, I feel like our market is being cautiously optimistic,” says John Ziegler Jr., vice president of Massillon, Ohio-based Ziegler Tire, which, with 28 stores, holds the 47th spot on the 2025 MTD 100. 

“Business, in general, is relatively solid. Supply overall is pretty good, as well as demand. I have to say demand has still continued to shift to the lower-tier products for us and we think tier-three is taking the brunt of it, with pressure on tire-two. Profitability on lower-tier products remains strong. However, this may come under pressure as the tariffs are implemented.” 

“Because of the tariffs, the market is a bit chaotic,” says Beth Barron, CEO of Morgan City, La.-based Chabill’s Tire and Auto Service, which holds the No. 59 position on the MTD 100. (Barron was MTD’s Tire Dealer of the Year Award recipient in 2024.) 

“Once all the price increases are announced, dealers will be able to make better decisions on what to stock and where is the best place to buy product.” 

“We’ve already experienced a pickup in both our commercial and wholesale businesses and had some significant OTR wins this spring,“ says Brooks Swentzel, president of Lexington, Ky.-based S&S Tire, No. 64 on the 2025 MTD 100, with 17 stores. 

“Tier-four sales are growing and challenging the highly competitive tier-one to tier-three space. Tariffs are unsettled and the impact is still evolving. Tier-four suppliers have adapted. The product is flowing and (is) in high demand.” 

Looking ahead, Swentzel says S&S Tire sees “significant opportunity for OTR growth, specifically with the resurgence of the coal industry, along with the mining, energy and transportation businesses that support it.” 

“We are seeing an uptick in demand for new medium truck tires and service over last year,” says Dave Langerak, chief operating officer of Byron Center, Mich.-based Wonderland Tire Co., No. 73 on the MTD 100 with 15 locations. 

“Retreading demand continues to be flat or even down. I believe this is due mostly to the influx of inexpensive tier-three and tier-four new medium truck tires being imported into the U.S. In addition, there has been considerable shrinkage in the over-the-road trucking industry since the COVID-19 rebound. 

“It remains to be seen how tariffs will affect pricing of these imports and how this will affect retread demand. Typically, we have seen a nice uptick in retread demand when tariffs were implemented in the past. 

“We are hopeful that these tariffs will stick and will be substantial. If so, they will have their intended effect — that of encouraging re-manufacturing in the U.S. and preventing unfair trade practices with other countries.” 

Joe Pehanick, CEO of Fairfield, Calif.- based East Bay Tire Co., which has 14 outlets and occupies the 81st spot on the 2025 MTD 100 along with several other dealerships, says that the “current state of the commercial tire market feels volatile. Tariffs are looming. These are creating hyperbole of discussion, but history tells us that the impacts on dealers and distributors will be minimal. 

“Along with stock market fluctuations and interest rates, commercial end users have little reason to buy in excess, which is forcing all of us to prove our value in the marketplace. The reality is that the impact of the waves of change is likely less than we fear. 

“The industry is challenged with the commoditization of the tire, as well as battling labor costs versus rates,” noted Pehanick. "This was first seen in retail as new and private brands have begun to dominate the sector to create healthy margins. It’s a trend that is growing within the commercial space and rightfully so. Major manufacturers are leaving specific segments where profit is too challenging and focusing on premium applications where brand and performance have greater value. This can create a yo-yo effect.” 

“The U.S. tire market is undergoing yet another year of ups, downs and unknowns,” says Tony Grace, CEO of 13-location, Alma, Mich.-based Alma Tire Companies, which shares the 88th spot on the MTD 100 with several other dealerships. “It’s hard to deny the feeling of trepidation that so many customers — fleets of any size — appear to have currently. 2025 will be a year in which a prudent strategy, efficient systems and the ability to demonstrate exceptional value to the customer will be of utmost importance.”