Do you shop for discount tires to drive your family around on ? Neither do I , Though I do not drive anything that requires 200 to 250 dollar tires ,I have bought excellent tires made in America for half that !
Wall Street Journal....
Consumers who buy low-price Chinese tires -- the bulk of the tires China exports to the U.S. -- will be hit hardest by the new tariff, as shortages in this market segment cause retailers to scramble to find alternative sources in other countries.
What is wrong with making them in America ?
The tariffs, which apply to all Chinese tires, will cut off much of the flow of the more than 46 million Chinese tires that came to the U.S. last year, nearly 17% of all tires sold in the country.
To Bad for China !
The low end of the market will feel the impact of the tariff most, as U.S. manufacturers, who joined the Chinese in opposing the tariffs, have said it isn't profitable to produce inexpensive tires in domestic plants.
"I think within the next 60 days you'll see some pretty significant price increases," said Jim Mayfield, president of Del-Nat Tire Corp. of Memphis, Tenn., a large importer and distributor of Chinese tires. He estimates prices for "entry-level" tires could increase 20% to 30%.
Low-end tires cost roughly $50 to $60 apiece, while premium tires can sell for $200 to $250.
It will take many months for producers in places like Indonesia and Brazil to pick up the slack. And any tire manufacturer that wants to get involved in the low-end business would have to revamp factory lines to produce the sizes and types of tires favored by U.S. consumers, a costly and complicated process.
Sounds like a good opportunity for an American Tire manufacturer to pick up the Slack !
There could also be shortages, Mr. Mayfield said, as existing supplies run low and importers have trouble finding alternative sources.
Many importers stopped placing orders for Chinese tires several weeks ago, fearing they might end up ordering tires that would carry a hefty tariff by the time they arrived in U.S. ports.
Good , Screw China !
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