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August 07, 2014

Are tire manufacturers pro-tariff?

The silence is deafening. Since the United Steelworkers filed a complaint against the influx of consumer tire imports from China, not a single tire manufacturer has come out for or against a tariff.

Does that mean they want the United States government to implement a duty on these tires? We can't be sure because no one is talking. But there are signs that they are, indeed, pro-tariff.

Modern Tire Dealer Editor Bob Ulrich addresses this issue in his latest blog, "Tire manufacturers will like the new tariff in town." And he gets some help from a friend.

Do you think tire manufacturers are for a tariff? What about tire dealers? Read the blog, then let us know what you think by leaving a comment!

Related Topics: B.O.B., tire tariffs, USW

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comments

  1. JEFF | August 07, 2014 at 09:50AM
    I am all for keeping us workers working and manufacturing in the USA. That being said if the tire manufacturers want tariffs on import tires than they better come up with some better lines of inexpensive tires. Do to the very bad economy a large part of my tire business is selling cheap import tires. There are a lot of consumers that take the its round and it rolls approach to tire purchasing even after I try and educate them on what would be a better fit for their vehicle. The up side for the retailer with import tires is I can mark them up higher make a better margin and still be considerable cheaper than the cheapest US manufactured tire. With the state of the economy its all about the bottom line and I would rather sell and import tire than none at all. I have a Wall Mart tire center, Kost tire, Jack Williams, Mavis, and now a new Pep Boys going in with in a 3 mile radius. I feel bad about the lack of jobs and manufacturing in this country and try and buy as much made in the USA as possible, but today you are almost forced to buy cheap not just to make money but to just survive in business.

  2. alpio | August 07, 2014 at 10:03AM
    No doubt they are in favor of it.. the Asian market can produce tires cheaper due to labor and non union help and regulations.. is that fair no but it is what it is.. the most important part of this is that tire prices will sky rocket again and the tire manufacturers will reap $$$$$

  3. David | August 07, 2014 at 01:16PM
    Of course the manufacturers are pro-tariff. It will let them raise their prices without trying to justify it using the material and labor costs have gone up reasoning. They will be able to do it because they can. A shortage of entry level product from China will just cause the prices of domestic tires to go up. Again the consumer here takes the hit and our government will collect more taxes called a tariff.

  4. David | August 07, 2014 at 05:47PM
    Who would not like reduced competition? The consumer will pay the price as the greed of an out of balance market-place will surface.

  5. Lee | August 08, 2014 at 05:52AM
    The rich get richer and the poor... start walking?

  6. Richard | August 08, 2014 at 02:09PM
    This isn't about how efficient the Far East is this is dumping. The same size tire in their home market is at least double the price. The raw material alone is about the price of the tyre landed in the US or Europe. Mao Tse Tung said before he died, "We have failed to beat the world militarily, we must therefore do it industrially".

  7. Michael | August 10, 2014 at 07:23AM
    On a monthly basis, I have people come in asking if I sell used tires. I do not for several reasons. These same people do not want pricing on new tires, even on new Chinese crap. They want cheap, not because they cannot afford it but because they are cheap. They do not believe that a tire can cost so much. They do not believe that a dealer doesn't make much on a tire. If tarrifs cause pricing on tires to increase further, all it will mean is that the cheap people will be looking for more used tires. the people who really care about their cars will continue purchasing a quality product.

  8. Ron | October 15, 2014 at 01:26PM
    A tarrif will squeeze the consumer as prices go up. The dealers who are selling the cheap Chinese tires will find margins shrinking along with their sales, while large companies with the ability to buy direct and wharehouse tires at current pricing will see increased sales. The bottom line is a tarrif will drive alot of small operations out of business and open the door for the Big Boys to expand market share.

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