Dealers react to tariff decision

Some brace for supply disruptions, price hikes

By: Mike Manges

One dealer called it “bad for the United States.” Another dealer called it “anti-consumer.” Yet another said it was “politically motivated.”

Independent tire retailers and wholesalers have been blunt in their assessment of President Barack Obama’s decision to slap punitive tariffs on Chinese-made passenger and light truck tires.

“It’s really unfortunate what the president has done,” says John Quirk, CEO and president of Lewiston, Maine-based VIP Parts, Tires and Service, one of the country’s largest independent tire store chains with 57 stores throughout New England.

Tariffs will lead to higher prices, which will stretch the budgets of entry-level tire buyers even further, he believes.

“It’s certainly going to raise prices dramatically; I think that’s a foregone conclusion. Not only are (prices of) Chinese products going to go way up, I think every tire manufacturer is going to follow suit. We’re going to see multiple price increases throughout the year.”

Quirk says supply will be impacted, as well. VIP sells a significant amount of Chinese-made private brand tires supplied by TBC Corp. “We’ve had to make some adjustments. To protect ourselves, we already have put in larger orders to ensure we don’t fall short on supply. But it’s going to put some pressure on our inventories.”

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Related Topics: Chinese tire imports, Tarrifs

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