Saurabh Dhir's questions to Cabot Corp (CBT) leadership • Q3 2025
Question
Saurabh Dhir, on behalf of John Roberts, inquired about the relationship between tariffs on Southeast Asian tires and demand in North America, asking at what tariff level domestic production would become competitive.
Answer
President, CEO & Director Sean Keohane provided a detailed overview of the current tariff landscape, noting rates of 19-29% for Southeast Asia and ~70% for China, while Mexico and Canada remain at zero under USMCA. He explained that while higher tariffs are directionally supportive of local production, the exact magnitude and timing are difficult to predict. He also highlighted that major tire companies are revitalizing their Tier 2 brands to compete more aggressively, which should also positively impact local demand.