Formula 1 tire supplier Pirelli could be barred from USA market

MILAN, Italy — Pirelli, the exclusive tire supplier for Formula 1 since 2011, is at risk of being partially or fully excluded from the massive U.S. market due to its Chinese ownership ties, as upcoming American regulations target connected-vehicle technologies linked to China.

–by Mark Cipolloni–

The Italian tiremaker’s largest shareholder is state-owned Sinochem Holdings, which holds a 37% stake. This connection has triggered concerns amid new U.S. rules—set to take effect as early as March 2026—that restrict hardware and software for connected vehicles from China or Russia over national security fears.

At the heart of the issue is Pirelli’s “Cyber Tyre” technology, which embeds sensors in tires to transmit real-time data on pressure, temperature, and wear. If Chinese influence is deemed significant, these advanced tires could be barred from U.S. sale or import, severely impacting Pirelli’s aftermarket and OEM business in America—one of its most profitable regions.

Pirelli executives, including Chairman Marco Tronchetti Provera, have repeatedly stated that the Sinochem stake has hindered U.S. expansion plans, with investments placed on hold as far back as April 2025.

Marco Tronchetti Provera and Stefano Domenicali. Photo courtesy of Pirelli

In response, the Italian government—under Prime Minister Giorgia Meloni—is actively working with Pirelli and shareholders to curb Chinese influence. Options reportedly on the table include slashing Sinochem’s stake to 10%, freezing its voting rights, or engineering a full exit for the Chinese investor. Discussions intensified in early January 2026, with a critical deadline looming in mid-March for compliance declarations to U.S. authorities.

This builds on prior actions: In 2023 and 2025, Italy used “golden power” regulations to limit Sinochem’s control over sensitive technologies, and Pirelli’s board formally declared the company no longer under Chinese control in April 2025.

While the restrictions target road-car technologies, the broader fallout could indirectly affect motorsports. Formula 1, with its booming U.S. presence—including sold-out races in Austin, Miami, and Las Vegas—relies entirely on Pirelli for tires. Any severe market lockout might complicate supply chains, increase costs, or force Pirelli to rethink its F1 commitment, though standard racing compounds do not incorporate the same connected sensors as Cyber Tires.

No official statements from Pirelli or F1 have directly addressed motorsports risks, but the situation underscores growing U.S.-China trade frictions spilling into global industries. Negotiations remain ongoing, with Pirelli’s future in America hanging in the balance.